Strange electrical issue impacting 4x4

[S Trac]

Strange finding.....my key has always been a tad loose in the ignition to the point my door does not chime sometimes when open. Just recently my 4x4 will not engage in this scenario. If I open my door and hold my key snug into the ignition and the door chimes and the 4x4 works like a champ every time. Now I just need to know what to fix?

 

[scott degroot]

I would start by replacing the ignition lock cylinder. They can get sloppy and not allow the actual ignition switch to be turned to the correct position.