Got a 94 F150 xlt 5.0
Push button 4wd. It was stuck in 4lo so I took off the transfer case switch motor, manually turned it to 2wd on the transfer case. Opened up the switch motor "gear box", replaced the rubber bushing/stopper on the peg. Put it all back together. The truck should be in 2wd and everything back to normal but both the 4x4 light and the light next to 4hi are on and won't turn off. Drives like it's in 2wd. Try to disengage or engage 4x4, hear the relay click but nothing changes. Disconnected the battery to try a reset but no luck. Not sure what the next step to try.

 

The switch motor is possibly seized.
Also when you reinstall everything, the motor and the transfer case have to be in the same position (2WD, 4x4 or 4Low) or the shift computer will get "lost".