from the top:
Wife engaged 4wd in snow to go to work. Snow melted she tried shifting to 2wd, wouldn't happen, she eventually got it into 4low and had a hell of a time getting back into high.
I tested it and push 2wd and I could here the front actuator and transfer case cycle through 2 shifts. 2wd light flashes on then 4wd light twice stopping on 4wd.
Pulled encoder motor, pushed 2wd button and watched encoder motor rotate, cycling twice.
Bought new encoder motor from O'reilly's not sure of brand probably Dorman. Installed it, didn't run it not bolte up to trans. Fired up tahoe and tried shifting and it acted exactly the same as the old motor. I pulled it loose and watched it rotate exactly the same as the old motor. Tried shift transfer case with wrench and i could get it into neutral but not 4 low, but that was with the wheels on the ground, front drive shft out and rear drive shaft in, even had my kid push it while I tried shifting w/wrench. It shifted cleanly into neutral and seemed fine applying pressure to clutches. (I wouldn't think hard to shift into 4lo would have any effect on 2hi/4hi).
Called Rockland Std Gear and tech said Dorman chinese encoder motors are junk and the Tccm won't always reconize them. I reinstalled the aftermarket encoder motor, start the tahoe with 1 front wheel off the ground, the front diff was locked in, screwed out the diff actuator and pushed 2wd button. The front actuator would pull in, push out, pull in and push out and stop and I could hear the tranfer case shifting in and out of hi and neutral. I shut the engine off, screwed the actuator back in turned the key to run position, 2wd light was on. As soon as I rotated the front wheel the front axle locked and the 2wd light went off.
Then I tried shifting into 4lo and it eventually did after several tries. Then I couldn't get it back out of 4lo for nothing. that was yesterday. I gave up. Didn't tell the wife not to drive it this morning and she backed it up in 4lo and then when she went to pull forward it went into neutral and she didn't push any buttons.
Tonight I got in it, it was in neutral, I pushed 2wd and 4wd and nothing happened. pushed 4lo button and it shifted into 4hi.
I don't think the clutches are being applied, I think the front accuator is not staying retracted as now no lights are on but the front end is locked. I have not tried rotating the front output with a wrench to see if it turns.