Again, ABS disabled (ABS light on) is a function of the CDL locking. Are you seeing the CDL light on the dash indicating that the CDL is locked?
The axle lockers will not activate until the center is locked.
It's very unlikely that there is an issue with the transfer case internals. It is far more likely that the CDL position switch is failing or is simply worn or damaged internally.
Switches are inexpensive and easy to change.
It's also possible that the CDL motor is corroded internally and not allowing full range of motion or has been removed at one point and not installed correctly.
The CDL light has never worked a single time for me in 3 years. CDL, rear locker and front locker have worked fine for the last 2 years.
I have done the pin 7 mod and added the CDL button. For the last 2 years the ABS would disconnect immediately (light would come on) and could hear the Center actuator engage and stop. Again, no CDL light at any time. I then could get rear to lock ( could hear it actuate) and the rear diff light would go solid. Then could get FR-RR (FRONT) to actuate and hear it and the front diff light would go solid. And it was 100% locked in front, center and rear.
ABS LIGHT on/disconnected
Center diff light not on, but locked
Rear diff locked, light solid
Front diff locked, light solid.
It was this way for 2 years.
Now, CDL is still actuating. I replaced CDL position switch with new, light still does not come on, and now ABS light does not come on when hitting CDL button either. (But it is still actuating). I jumper wire the plug to that switch and ABS light comes right on but not CDL light. I heard some chatter in the transmission relay, tapped on it some and still chattered then tapped again and no more chatter. Didn't change the issue. So I replaced the transmission relay with another I had on hand and no change. After locking CDL I try to actuate rear and no sound. I figure because ABS is not disconnected. I'm trying now to look into why ABS is not disconnecting