It appears that my truck is okay, but the procedure in the owners manual is wrong. A helpful service adviser at the local Chevy dealer showed me how to do it:
1. Start the engine.
2. Apply the brakes.
3. Rotate the transfer case knob all the way to the right (clockwise) and hold it.
4. Shift the transmission into neutral.
5. Release the transfer case knob when the red “N” appears on the transfer case knob.
6. The transfer case is now in neutral.
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Wednesday, March 4th, 2015 AT 7:08 AM