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I am Having the same problem!!! Sounds like the same problem my wife is having with her tahoe. I replaced front actuator , transfer case switch, dash buttons , and 4wd module under dash... Still seems like it is stuck in 4wd...

Started out taking it to dealer..they told me it was the 4wd actuator.orderd the actuator and 2 days later installed it. didnt work. I then found out about the encoder motor and the encoder switch. The encoder switch cannot be purchased alone , so I had to purchase the whole encoder motor...