96 Tahoe 4wd issue

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the downlow

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their is a bulletin for 88-97 K1500s for this. The acuator on the front diff. was fluid acuated and they call to update it to the electic one for 97-up. you replace the acuator and there is a harness that has to be installed too to switch it. i can give you the bulletin number 76-43-01A

this is most likely your problem. cant say for sure without seeing it but this should give you a starting point.
 

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