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|the transfer case shift motor believes you are still in 4 low, so the truck thinks it is
You manually shifted it to 2wd
So the truck is freaking out because it sees one thing from shift motor and another from the speed sensor.
To fix, try shifting truck from 4 low to 2wd using the dash switch, Watch the shift motor see if it turns.
Remember to get in or out of low range. must be at complete stop and in NEUTRAL (Not park) foot on brake, then turn knob to 2wd....
If the shift motor turns to the 2wd position, bolt it back to the transfer case
If it does not turn, then its likely you need a shift motor or rebuild yours.
If it does turn, then bolt it back to t case and see if your 4 hi and 4 low is working again.
To switch between 2hi and 4 hi you can shift at anytime under 45 mph
Again to get in and out of 4 low you must be stopped, foot on brake and in N
This is just the shift motor portion of your 4x4, the vacuum hubs are a whole separate issue, if you plan to use the 4x4 in this truck consider ditching the vacuum hub setup by installing CV axles, wheel bearings and knuckles from a non vacuum hub truck (ranger or explorer)
I build custom RBV, specializing in drivetrain conversions, wiring, suspension and complete custom trucks