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yes, the light does come on in L4 and off in H4 so we are guessing the actuator in the locker is working.
Maybe this guy had some problem with the vc or the locker actuator and decided to lock it permanently since he didn't use the truck on paved roads? I guess the only way to find out is to open it up and take a look inside....???
Hopefuly someone else will have another idea.
If it was me, I'd take a MM and ck that switch on the center diff. You should have continuity when the diff is locked and no continuity when it isn't, regardless of what was done with the other wires.
HTH
SJ