Yes, those are two different issues. Don't know about reverse, but usually when one gear goes it's getting time for a trans rebuild.
First, just in case you're not aware, the truck will not shift in or out of 4 Lo until the truck is stopped and in neutral (sometimes they will shift when in Park though).
The flashing shift button light is telling you the actuator is not engaging the front axle. You ost likely need a new actuator. This is a common problem with the thermal actuators.
The electric actuators are more reliable and shift engage the axle almost instantly. They do not like to be immersed though.
The electric version requires a new wiring harness and can be a challenge to route the wiring back to the cab.