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On my 01 Yukon it was the switch in the dash. I took it apart abd found several bad soldier Joints. I found the same problem in the rear AC controller module. You can buy a new module or take yours apart
These somtimes have problems with wirering at connection for 4wd modual. It should be located in pass. side kick panel. Wiggle wires and connector and see if problem occures. Problem sometimes located in connector.
Does it sound like a loud winding sound coming from the front right side? I have a 2001 Jimmy and the 4wd tries to engage when driving up steep hills and going at highway speeds. The actuator vacuum switch engaged when the transfer case vacuum switch sends the vacuumed air to the actuator. What is happening is their is either a leak in the vacuum lines, a faulty actuator switch, or a faulty transfer case vacuum switch. When the jimmy has enough air pulling in, the extra vacuum is trying to push the actuator switch in when it is not supposed to. It is a much cheaper fix than a transmission. GMC should have recalled the whole 4wd system on any of the S10's, the JImmy's, and Blazers.