98 Cherokee Classic

I have read about a lot of issues with Jeeps getting stuck in part-time 4WD and the different ways to disengage. My issue seems to be a little different.

I have a 1998 Cherokee Classic with 4.0L and with a shift lever to switch from 2WD / Part-Time 4WD / Full-Time 4WD / 4WD LO.

I drive 25 miles home from work in 2WD, truck performs perfectly. I never touch the lever to switch from 2WD, yet, when I come out of my house in the morning and start the truck, the part-time 4WD light is on and the truck is actually in part-time 4WD. I can feel the lurching associated with that mode when backing up and turning. To avoid that, and in an attempt to not drive on dry surfaces in part-time 4WD, I pull the lever up from the 2WD drive position, past the part-time position into full-time 4WD and the truck shifts properly into 4WD. While driving to work in full-time 4WD there are no highways so I do not get over 50 Mph in full-time 4WD.

Aproximately, 10 miles into the trip, I can move the lever back, past the part-time 4WD (it never actually goes into part-time) and back into 2WD and it works perfectly. If I attempt to put the truck into 2WD anytime prior to the 10 mile mark it will only go into part-time 4WD. Anyway, I get to work, shut the truck off, work all day and come out and the truck is still in 2WD as expected and functions perfectly all the way home. I come out in the morning and the whole process begins again.

I get where I am going and this little game is amusing, but I fear i am causing some long term damage.

Has anyone heard of or experienced this issue? Are there any easy fixes or things I can check?

I am pretty handy but I am no automechanic, I can do a brake job, maybe even replace a water pump but know nothing about transfer cases, linkage or transmissions. Unfortunately, I cannot trust any of the commercial mechanics in the area as they are mostly crooks so I am not looking forward to bringing it into a shop.

DFlintstone

That's a good one! Possessed no doubt. I'm not far ahead of you in the transfer case, case. I can tell you though there is a filler plug on it you fill till it spills. (pretty sure)( it's the upper large plug, about mid height) Check your stuff, but I put Dextron lll (equil) in mine. It can't hurt to rule that out. You might see if your fluid is ugly or burnt or smelly also.
That's all I got, Good luck.