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You may have a vacuum leak. The front diff is actuated by vacuum. At the firewall, passenger side are 2 solenoids which actuate the vacuum to lock/unlock the front diff. If the one to lock the front diff is bad or the line from the solenoid to front diff is broke, the, you do not get the front axle locked in. Obviously the front shaft is turning, so it is not a tranfer case issue.
The other possibility is the front diff vacuum motor is bad.
This may all still be under warranty, depending upon milage. Under 36k?
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