The Front drive shaft does lock when in 4 hi and un locks in 2 hi as well.

 

It should only take ~3/4" of travel in the cable to lock in the front axle.

 

Ok, so encoder motor is fine? I’d rather save the 140$ if it’s working properly. Also why aren’t I getting a 4wd service light or why would the 4hi light not be blinking if it’s not engaging?

 

The 3-button system isn't all that intelligent when it comes to engagement. From what you have stated, it would appear as though the encoder is functioning properly and it is something in the front axle that is at fault. You'll have to dig into it and inspect the engagement mechanism further to see what's really going on in there. I have seen the engagement collar break apart in the past which leads to no engagement, but all other inputs to the TCCM lead it to believe that everything is locked in properly.

 

Would it make any noise? It drives very smooth with no noise. I was just hoping it wasn’t anything internal. If internal still something I could DYI? Im pretty handy and always do my research b4 digging into anything.

 

If the front driveshaft is locked in 4WD, which you say it is, with the engine running elevate the right front wheel and see if you can rotate in either direction. If
it only moves a little and stops in both directions, then the axle is locked in too. If not, look at the vacuum, front axle actuator, and front axle actuator cable.

Then we can go from there.

Bill