I know you have an automatic in yours but this is what I meant about raising your transfer case shifter pivot.
I bolted a homemade bracket to my transfer case adapter. You'll notice I have two sets of holes because the first were too far forward. I didn't have an exhaust pipe on the...
The problem with the transfer case shift linkage is the mounting location of the pin it pivots on. Take a look at the bracket it is mounted to and see about raising it the required amount.
The nub on the rod the rides in the slot is actually a pressed in piece in the shift arm. That bolt head...
Normally the larger bushing would be the one holding the load as in the one on the right below.
The smaller bushing just provides some rebound control.