Rockola, I have rebuilt a few of these transfer cases, I don’t see anything inside these that will blow up because I test it on jack stands. The speed sensors will notice the front wheels and rear are not going the same speed and set a code that is easily cleared once work is done.
Sometimes a noise can’t be isolated without a test like this.
Running the truck in gear on jack stands does cause the front diff to work the spider gears unusually hard and that makes odd noises, the CV shafts hanging low with the control arms fully down is not good for them either so I think I will repeat the test with the front driveline removed. If the rear end and transfer case end up quiet after this test I know it is the Front differential but I really hope not. I have never rebuilt one of the front diffs and do not want to learn that one.
Had one with 4.10 gears, was thinking of switching to 3.42 gears for better MPG. I installed a rear diff with 3.42’s and for this test removed the front driveshaft and drove it about 300 miles. MPG was basically the same and the vehicle felt slow off the line after running the 4.10 ratio fso I reinstalled the 4.10 gears. Had to clear the codes of course but no other issues. For my use I really liked the 4.10 gear ratio and would get one again.