I was referring to dolly tow with a regular tow truck (so all 4 wheels are off the ground).
The thing with the 2-speed transfer case (at least with the GMT800 ones), is that when the transfer case is in neutral:
-the front diff is unlocked, so if you tow with the front wheels down, it's no problem (to the front diff, it's just like driving around normally, and the front driveshaft doesn't spin, so the rest of the drivetrain is fine)
-if you tow with the rear wheels down, the rear driveshaft spins the output shaft of the transfer case. This is ok, because the oil pump in the transfer case is driven off the output shaft, so oil is pumped through the TC, so everything stays lubed while in motion, and (also important) the output shaft of the transmission isn't being rotated
For 2wd vehicles, the problem with towing with the rear wheels down and the transmission in neutral, is that the oil pump in the transmission is driven off the transmissions input shaft (so the transmission works with the engine running regardless of what speed you are going). But, with the engine off (typical for when you are towing), and the rear wheels on the ground, bits in the transmission are spinning without the oil pump going to lube them, which is "a bad thing".
I don't know the internals of the 1-speed TCs or the front diff used with them, but most likely, they don't work the same way, and will be damaged if towed for any significant distance.