The front axle disonnect is not working properly. It is vacuum controlled, so start by checking the following:
1)Jeep running, in neutral or park with e-brake on
2)Remove the two vacuum lines from the
front axle disconnect (on pass. side)
3)Have somebody you trust shift Jeep into 4wd and back to 2wd
4)Feel for strong vacuum in one line in 2wd and other line in 4wd
If that checks out okay, the problem is in the front axle. Remove the shift motor (held to axle with 4 bolts) and work the shift fork back and forth by hand. Clean with WD40 and spray into both vacuum ports while moving the shift fork. Reassemble and hook up the vacuum lines. It SHOULD work now.
If the vacuum check is not okay, either the vacuum switch in the
transfer case is bad or there is no vacuum to the
transfer case from the intake manifold. The vacuum switch in the transfer case is easy to replace, it threads into the transfer case on the pass. side.
Let me know what you find, I'll help as best I can.

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