That era of Chevy trucks and 4WD inoperative is typically a bad ground on the frame, drivers side, aft front wheel. There is a group of ground wires that are crimped into the same eyelet and the smaller gauge wire corrodes and fails.
Plenty of youtube videos showing location.
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Your best bet , take to a qualified repair shop that has proper diagnostic testing tool
DTC B2725 ATC Mode Switch Circuit Malfunction
DTC C0300 Rear Speed Sensor Malfunction
DTC C0305 Front Speed Sensor Malfunction
DTC C0308 Motor A/B Circuit Low
DTC C0309 Motor A/B Circuit High
DTC C0310 Motor A/B Circuit Open
DTC C0315 Motor Ground Circuit Open
DTC C0323 T-Case Lock Circuit Low
DTC C0324 T-Case Lock Circuit High
DTC C0327 Encoder Circuit Malfunction
DTC C0367 Front Axle Control Circuit High
DTC C0374 General System Malfunction
DTC C0376 Front/Rear Shaft Speed Mismatch
DTC C0387 Unable to Perform Shift
DTC C0550 ECU Malfunction
DTC C0611 VIN Information Error
SOURCE: 99 silverado 4wd went out... transfer case?
a little tip a friend gave me in unlocking the 4wd drive on ramps or hill and then put in neutral let roll back a foot put in park and then let off the 4wd
when in 4wd the hubs get a little heated cause they need greased so they stick into position making it hard to come out of 4wd this which i spoke of i got stuck in the senerio where i almost drove home in 4wd from 300 miles away but i called my friend he told me bought this and so i thought it could help you
your hubs just locked up on you your bearings are going to need to be packed again this is normal for this
hub
SOURCE: 1996 chevy silverado z71 electronic transfer case wont work
It's the transfer case vacuum switch. Easy fix.
SOURCE: 01 Chevy Silverado 4 X 4 not working. 4WD light
Having the same exact problem but with my 1999 escalade. Thought it was the actuator bought a new one installed it transfer case would engage but front end wouldnt lock. Took it out of housing left it plugged in got a friend to go through all the 4wd for me and the plunger never moved out the actuator. Checked my wiring harness which is a four prong ann it had one hot prong like it is suppose to. Traced wires even replaced dash switch same problem. Taking it to local dealership tom to have it checked for codes. I was told it could be the transfercase actuator even though its workin that actuator is what sends power to the front to engage the actuator to lock the differential.
SOURCE: 2003 chevy silverado 2500hd 4wd makes grinding
sound like the shift motor or shift gear in transfer case that makes it go into 4WD.sound like gear damage or worn
SOURCE: I have a 1995 Silverado 4x4. The 4WD will not
I HAD A BLAZER WITH THE SAME SYMPTOMS REPLACED THE TRANSFER CASE MOTOR AND SOLVED PROBLEM. TRANSFER CASE MOTOR SHIFTS FROM HIGH TO LOW GEAR IN THE TRANSFER CASE AND TELLS THE FRONT ACTUATORS TO INGAGE FRONT HUBS . MOTOR WON'T MOVE TO 4 HIGH AND GRINDS WHEN TRYING TO MOVE TO 4 LOW, TRANSFER CASE MOTOR FAILING . CHECK VACUUM LINES AND ACTUATORS ON FRONT DIFF THEY FAIL, CAN CHANGE TO CABLE ENGAGEMENT INSTEAD OF FAILURE PRONE VACUUM ACTUATORS.
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