Just swap it all out with a 10r80 and rappy tcase. Call it a day.The part was never fully developed. Ram came out with an updated transfer case that was a drop in replacement.
Maybe the right size shim in the mechanism would increase the tension. A feeler gauge and calipers would be where I start. Looks like there is enough play that you could get a few more thousandths take up which might be all you need.
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