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See that this is an old problem. Some of the knobs could crack on the backside and allow the knob to rotate on the shaft without turning the shaft at all. If the knob is okay then go underneath the vehicle and disconnect the electric plug on the shift solenoid and Inspect for corrosion on the terminals. There is a problem which can happen if an indicator light burns out in the electric shift models. The length of the shift solenoid plunger is what determines whether you are in 2 wheel or 4 wheel drive, or high or low range. If the indicator light burns out, it changes the electric power and position of the shift solenoid plunger.
You need to have your foot on the brake, put the Trans in Neutral, and then shift the Selector to 4 Wheel low. If this does not work you need to check the wire at the transmission for Voltage changes. Each position on the selector has a Resistor and they use 1 Servo to make the gear changes. You need to see if the Selector has different Voltages in each position. If it does, then the Servo is not responding.
But do not forget the Interlock of the brake pedal for the gears to change. Also check for light at the Selector switch. If the lightbulb is burned out you will sometimes throw off resistance and wind up missing functions.
Replace the speed sensor in the transmission this issue has caused rear differential damage on vehicles I have heard of, also check the under neath electrical connections that go to the transfer case to ensure no damage to the wiring harness or electrical plugs has occured
Is it auto push button. If so there are more probles could be than just one.(push button) blown fuse, now power to the switch, no power to the vacume accuator or vacume. mabe differnt size tireds, but chances are good that its a vacume proble,