The description sounds like the all wheel drive selector switch in the case is either bad or disconnected. It triggers the 2, 4hi and 4Lo lights as well as tells the PCM which mode the transfer case is in so it will actuate the actuator pump and engage the front hubs. If the switch does not work the PCM never gets that signal. You can get to the switch from inside by removing the console over the parking brake/shifter and the access panel under it. The switch is on top next to the shifter.
Images (Click to enlarge)
Friday, February 16th, 2018 AT 7:44 PM