A seized VC in the transfer case would cause understeer in a tight turn. It would behave as if the center differential was locked.
This is PAINFULLY easy to diagnose, if the "mechanic" understands how a VC in a full time 4WD vehicle is supposed to behave.
Vehicle with all 4 wheels on the ground (wheels chocked), transfer case in neutral, CDL unlocked, 1 driveshaft removed. The output flange of the removed driveshaft should be able to be rotated by hand with resistance caused by the silicone fluid in the VC.
If it can't be rotated, then either the CDL is locked or the VC is seized.
If the VC is seized, then you can remove it or replace it as previously described.
Both Valley Hybrids and Cruiser Outfitters can supply you with a freshly rebuilt transfer case, with or without gear change options.
Another option is to pick up a used transfer case from one of the many folks who regularly part out vehicles in the classifieds section. Tcases are usually cheap because they rarely fail.