Trans Case Slips Into Neutral

[humer]

I have a 2004 chev silverado 1500 with auto 4x4 transfer case. Its been kicking out of 2wd lately, especially when I slow down for a corner or stop sign. I have to shift it to 4hi (push button) to get going again. It grinds and finally clunks back in. then I can shift back to 2wd and go (for awhile at least). Im thinking its the actuator or encoder motor but not sure. Maybe just the sensor inside the actuator? Any help would be greatly appreciated.

[ChevyTech77]

Yup, sounds like the encoder motor sensor has went south.