Transfer Case moving to Neutral while driving

[BamaGuy]

This has happened twice in the past month. First time let it sit overnight and it drove fine the next day. Took it to the dealership and they couldn't find anything wrong except an ABS Module Update that they could charge me for. Happened again and I took a photo of the dash readout while I was coasting on the road. If I shift it to 4H then I can continue but if it is in 2H then it will stay in Neutral. It is currently back at the dealership while they are trying to recreate the issue. Has anyone else seen this issue?

 

[Bearcatrp]

Does your buttons that show you your in 2WD switch to neutral? Have a 21 3500 tradesman. Your issue has my attention. Have you tried a google search to see if anything pops up?

 

[BamaGuy]

I have a manual TC and it is still in 2H while it actually is in Neutral. See the photo above which shows I am in Drive but also lit up that I am in Neutral. I have done an extensive search and can't find anyone with the exact problem. Today was day two at the dealership and still nothing.

 

[DILLIGAF]

I have a manual TC and it is still in 2H while it actually is in Neutral.

Today was day two at the dealership and still nothing.

Its a 2 hour job and 300$ for a rebuild kit. WTF are those guys doing. Ive never worked on a N271 before last week, and I was able figured it out.

And reading all the issues with the n273 im glad I choose the manual version for my build.

Its either one of the gears chewd up and got stuck, a c-lip that fell off. or the selector inside somehow got jammed.