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It is AWD only
That top button is 2wd. I don't remember 05 but being in 2wd may also turn off traction control your owners manual should tell you
Well, guess what I was educated about a couple of weeks ago does according to the manual not hold true.
This is an AWD with Stabilitrak System, not an AUTO 4WD system, see picture out of my manual.
There is no mention anywhere that 2 wheel drive will be engaged once the Stabilitrak (top button) is turned off.
Hopes this helps and does clarify this once and for all.
Feel free to post this in that other thread as well so that if anyone searches and finds that thread they get correct info