On the NV136 transfer case, the ATC fuse is used to power the encoder motor, switched by the TCCM. If the fuse blows whenever the transfer case attempts to send power to the front axle, then you either have a problem with the wiring between the TCCM and the encoder motor or an internal fault in the encoder motor.

Attached is a wiring diagram for the NV136 transfer case power/ground supply which will give you an idea of what wires to test for continuity to ground and/or each other with the encoder motor and TCCM disconnected.

 

Thank you very much!

 

You could also just pull the encoder motor out and test it with a couple jumper leads and a battery, you'll have to remove the front driveshaft to remove the motor, when you hood the leads up, either one can be power or ground, watch the the end of the motor that goes into the tc when you touch the second wire, and if it moves, only let it move a little bit since there is no limit switch inside the motor, then swap the wires and if it moves the other way (both ways) then the motor is good, if you get no movement, then it's bad. If it does move then your problem is in the harness or module.

 

Did you get this fixed? I'm having a similar problem.

I see you were on here not TOO long ago. I hate when threads like this just dangle out there with no resolution or update.