2002 Tahoe 4x4 transfer question

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I have a 2002 Tahoe 4x4. It has the Auto 4, 2hi, 4hi and 4lo switch on the console.

 

The front drive shaft appears to be locked to the rear drive shaft. I can not freely turn the front drive shaft by hand. I have lifted the truck and the front wheels turn freely with out turning the drive shaft. The rear wheels turn and both drive shafts turn. I would think, there would be some slight resistance because of the Auto4x4 but shouldn't I be able to turn the front drive shaft independently of the rear. Isn't that the purpose of the transfer.

 

My older Silverado and my current 2003 1500HD, I can turn the front drive shaft with a little effort. The 2003 is set up the same with Auto4x4.

 

So far I have not been able to get a straight answer from two different chevrolet dealers (service). One said it was working fine. The other said it should turn freely.

 

Any help is greatly appreciated.