In Auto4wd, the TCCM will command the encoder motor to varying positions between 2HI & 4HI depending on the slip detected. Whenever a change in front prop shaft torque is made by the TCCM, the encoder motor lock will energize to release the locking brake, the encoder will move to the new desired position, then deenergize the motor lock to keep the required position. This basically loads or unloads the viscous coupling that drives the front prop shaft to vary the torque output from 0% torque applied (disegaged front prop shaft aka. 2HI) to 50% torque applied (locked in front prop shaft aka. 4HI).

If you put a wrench on the shaft, you'll likely feel spring pressure when transitioning between 2HI and 4HI. I'm not sure what to expect as far as detent positions as I have never tried this on the NV236/246 transfer cases. There may be detents for all 4 of the positions, but detents are really not necessary given the lock in the encoder motor. If you get in there, report back with your findings.

 

I wish there was an animated video out there on youtube that illustrates all of the different modes and what happens in the vehicle for a NP236/246 with 4 button.

I’m thankful I was able to get my transfer case working, in spite of my lack of understanding on how the dang thing works…

 

All I ever felt was the spring pressure for 4Hi - not a specific detent.