Thanks starman8tdc
I am going to revisit this... the encoder that is. Based on some further research I gathered, *usually* if there is something wacky going on with the encoder, the drive selections will not be successful which would be noted by blinking selector lights and failure to go into the selected mode.
However, I did read a few cases where all *seems* OK on the indictator... such as in my case.... where the encoder motor makes the audible noises during selection followed by a nice solid indicator light. BUT, the encoder motor isn’t holding in the clutches therefore it isn’t actually engaged.
Going to do the very test you just mentioned by jacking up the front.
I also have access to what seems to be a pretty elaborate Snap On scanner. Not sure if it will read GM 4wd codes but I will give it a shot. As mentioned, when the issue first started, the “Service 4wd System” light came on. It never returned but I’d love to see what the code was.