This seems to be somewhat correct, although at what point does the front diff actuator couple the front propshaft (and transfer case) to the diff? It wouldn't be needed if they're already coupled. They are separate until the front diff actuator is commanded on.
At least that's the way mine is on my NP246 AUTO system -- I can tell when the front engages, maybe 1/2 second or so after sensing rear wheel slip. The T/C always keeps the front propshaft spinning at an appropriate speed so the engagement can be quick, but it's not coupled to the diff until the actuator, well, actuates it.
Obviously your newer systems might operate differently, but if there's a front diff actuator, I don't see how. Enlighten me, please.
Running in AUTO theoretically won't cause any additional wear on the diff, unless it's engaged by the computer. Clear as mud?