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Originally Posted by f5fstop
A failed T/case controller controls the encoder motor that engages all the different 4-wheel drive systems on the vehicle. So, if there was a major failure and it did not correctly process the information from the inputs, including the BCM via the class 2 circuit, it could attempt to engage.
It could just change the indicators too without engaging or disengaging.
I'm not saying it is the problem, all I'm saying is it could be a problem, and for a fact, a well-known problem!
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Sorry, you mentioned transmission controller originally when I think you meant T-case. That's where I was confused.
I'm betting he's just getting that change of indicator lights and not actual switching in the t-case itself.