NP231 inverse slip yoke?
 

So I have a 1996 Jeep Cherokee Classic currently replacing the engine and I took out the rear drive shaft to check the u-joints while I'm waiting for the new engine. As I remove the driveshaft from the transfer case instead of the shaft coming out of the case the case came out of the shaft leaving an exposed shaft from the case (see attached). I was wondering if anyone had an explanation for this because as far as I've seen it's the other way.
https://cimg7.ibsrv.net/gimg/www.che...4c5ba7a719.jpg
T-case with shaft coming out

That's not a slip yoke. That's the stock configuration for the NP231 and driveshaft. A slip yoke would have a double carden u-joint system like in your front driveshaft.

Wouldnt that be with a sye (slip yoke eliminator)

you have the newer style np231. The older style has an extended tail housing that the driveshaft end slides into.
I believe after 95 or 96 is when they changed.
Maybe that is what you are thinking of?

That would be it all the videos I've seen of an SYE install were on older one

That's normal for the later xfer cases. The older ones had a tailcone that covered that part and the end of the shaft slipped inside of that. That also meant the older ones will piddle oil if you pull the shaft and try to drive it Grease those splines when you put it back together, btw.