Okay, this sounds like you have a failed transfer case. In 2 wheel drive there is a failure in the case, not transferring power to the wheels.
Roy
REMOVAL PROCEDURE
1. Raise and support the vehicle. Refer to Vehicle Lift Points.
2. Remove the transfer case shield. Refer to Shield Replacement.
3. Remove the front propeller shaft. Refer to Propeller Shaft Replacement-Two-Piece in Propeller Shaft.
4. Remove the rear propeller shaft. Refer to Propeller Shaft Replacement (System Balanced Assembly) in Propeller Shaft.
5. Disconnect the vehicle speed sensor electrical connector.
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6. Disconnect the wiring harness from the transfer case.
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7. Remove the transfer case motor/Encoder.
Support the transfer case with a jack.
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8. Remove the bolts securing the transfer case to the transmission adapter.
9. Remove the gasket.
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Monday, January 6th, 2020 AT 10:38 AM