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My 89 was like that, SHE was stubborn. I had no 4hi so I would use 4lo. When I had to switch back to 2hi the lever would go but it wouldnt change internally, I would unlock the hubs and drive it like that until it would pop into neutral, then I would play with the gear shifter (had to be rolling) and eventually grind it into 2hi. I solved it by replacing the transfercase. Sorry for the bad new but your transfer case has internal problems, and either needs rebuilding or fixing