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This is normal with obd2 devices, you can unplug it or buy a switch to allow you to turn if off, just google obd2 switch, picked mine up for $10. A lot depends on how you drive it. for what you want to do next, if you offload once a month, monitor your transfer case more. If its a daily driver that hardly sees dirt. I wouldn't worry about transfer case to much. Never put it in 4wd on pavement, unless covered in snow. If it is worth repairing is up to you. If it is just another vehicle to you and you have your eyes on another vehicle then you should move forward with it. But you have time. I have a 99 2dr 4wd, i plan on keeping it as long as i can so it is worth repairing to me.
