The description sounds like the clutch is dragging or more likely the pilot bearing is failing. Both would keep the input shaft moving while you try to shift. It is also possible that the synchronizers are worn inside the transmission and causing the gear clash.
Hard to tell which without actually hearing it shift.
The transfer case should make no difference. The parts that are spinning in it and the transmission should all move together if the vehicle is in motion.
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Wednesday, August 2nd, 2017 AT 10:23 AM