Re: transfer case
I am willing to bet the lever is stuck in nuetral but the transfer case is still in 2 high.
Solution is to pull the transfer case lever and install the bottom of the shifter into the notch of the right shift rail. To keep it from happening again install a sheat (plastic socket) from the dealer after removing the old chunks.
Can also just shim up the shift lever with washers so the flat section on the bottom end of the shift lever rides in the notches in shift rails.
Plan b: Take your transfer case apart and remove the locking device that prevents the transfer case from shifting into 2 Low. File the notches in the shift rails so they are more of a V. This is a good time to install lower transfer case gears and new bearings.