4wd not working properly

Can you let us know which transfer case you have? There are three options shown below. Let me know because it makes a difference. Also, can you confirm for me when you say the transfer case switches to 4WD, does that mean the light is indicating it is or the shift motor is actually engaging?

I can hear the transfer case shift when I put it in 4 low and put it in gear I'm in low range. I will find out which transfer case I have.

2 speed selectable

Okay. So when you shift to hi or lo how do you know it is going into 4WD if you are not getting movement of the front tires? Does the front drive shaft turn when in 4WD and moving? It will probably be needed to lift the 4 tires so you can test this safely.

Let me know if the drive shaft is spinning when lifted because if you are correct then there is a failure inside the case if the shaft is not spinning.