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Yesterday I jumped into the vehicle to back out of the garage. I noticed the 4WD indicator light on the dash on. The round switch on the console was in the usual auto position and the vehicle drove normally.
After hefty bill from the stealership my problem is solved. It was a faulty Rotary Position Sensor situated at the front of the transfer case. It is easily accessible, part only cost was just under $400. It is held by 2 screws. Total cost $840 included diagnostic time on computer and 1 hour fitting.
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