1999 Jeep clicking noise (Transfer Case Problem?)

I have a 1999 Jeep Grand Cherokee Laredo and am currently hearing a clicking noise from the front when I brake. I've had the brakes checked out by two different shops and they both diagnosed them as fine. Now the Jeep dealership is telling me that the issue is the transfer case. I guess the tansfer case fluid was extremely low.

The issue I have is that the transfer case is behind the front passanger seat, so why would I be hearing a noise from the front. Also, if it is the transfer case wouldn't I also be hearing clicking when I was accelerating as well, If not all the time?

It doesn't make sense that I would only hear the noise when braking if it was the transfer case.

Can someone please let me know if they have heard of this issue before or if the Jeep dealership is way off?

Thanks!