Ok so I thought I couldn't get into 4x4 and have been driving around for about a month and just found out tonight I have been in 4x4 the whole time. I guess I never really thought about it or worried about it. It did seem weird while sharp turning on dry pavement. Thought it was because of the new 35's. So I have no dash light for the 4x4 and the twisty does nothing. I did install a new motor on the transfer case. I saw that the vacuum lines for the front diff melted from resting on the exhaust. Could this be causing the issue?

 

That would be my first point of attack. I am no 4x4 guru but vacuum lines going to a front differential that is locked in 4WD seems like a no-brainer to me.. I would replace the lines and also fix the problem that caused the lines to melt.

 

I'm on that for tomorrow. Didn't realize that could be the cause but it makes perfect sense now.