I have a 2008 Limited KK and I'm experiencing some strange behavior with the transfer case and 4x4 dash lights. A few months ago I encountered an issue where the service 4x4, 4x4 low, 4x4, and traction control lights would all light up on the dash periodically. This didn't happen every start but started to happen more and more often as the weeks went on.

The motor was definitely dying because it would sometimes switch between 2x4, 4x4, etc. but not very well. I put in a new transfer case motor and everything was solved.

Fast forward two months, it is happening again. If I don't start the Jeep, and instead just bring the ignition on, I can tell if the 4x4 lights will remain on or not. If they remain on, I turn the ignition off and back on. If they go off after a few seconds, I start up the Jeep and drive normally. I never have a single issue after that.

It is possible my new motor has also gone bad but I am suspicious that something else is going on. For the older JK libertys, I see there is a lot of mention of a transfer case position sensor. However, I can't find much info for that with the KK models. Any ideas about what might be going on? Because the issues seem to be only when the initial check is performed by the Jeep when I turn on the ignition, I think it is maybe a sensor or electrical issue.

Any codes?
Have you checked the wiring closely and associated connectors?
Does the shift motor function ok if you change modes?
Have you tried exercising the motor a few times to see if it makes any difference?

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I pulled the codes and I am getting C1403 - Transfer Case Range Position Sensor Performance

I got the same code previously when I put a new motor in two months ago. The problem went away but it's appearing again. I know it's possible I got a bad motor that has already died but it seems unlikely so I am wondering if something else is going on.

UPDATE: I contacted RockAuto and they sent me a replacement transfer case motor under warranty. Threw that in yesterday and my problem is solved. Guess I just had a bad motor that was dying.