Yes. Since the TCCM is looking for the axle to lock and unlock, it would react the same way if the sensor was not opening up properly as would happen when a jumper was inserted.

If a posi-lock setup was to be attempted on a 4-button (NV236) transfer case, you would need to engage and disengage the front axle just after pushing the button on the dash. Failure to do so could cause the TCCM to lockout shifting causing you to be stuck in whatever mode/range it was in at the time of the fault recognition.

 

Yup, ^^^ what Kyle said

 

So I wouldn't be able to use the 2 low the posi lock would add?

 

You may be able to disengage the front axle, but the TCCM might not like it and refuse to shift out of low range. It all depends on whether the TCCM monitors the switch at any other time but during shifts.