Transfer Case slippage?

[Greg Bosin]

My transmission is torn apart and being gone through at a transmission shop. At this point he can’t seem to find any issue and speculates that if he can’t find anything that it could be the transfer case? Is there clutches in the transfer case? That doesn’t make sense since I managed to make it home using 1st and 2nd manually. No drive and no reverse. It happened shifting from 2nd to 3rd like the common flare issue only worse. The tech says clutches, gears, bearings all look good and no metal in the filter and fluid. I’m thinking a valve body or hydraulic issue. I have no hands on experience with auto-transmissions and have learned a lot from the great people on this forum.
Any ideas?
Gen 1 Job 2 4x4

Thanks,
Greg Bosin

 

[Todd Z]

No clutches, Direct drive chain.... it could be the rear if it is a LSD and the clutches are toast.

 

[Greg Bosin]

Looks like it is the overdrive band and clutches

 

[Todd Z]

there ya go.

 

[Johnny O]

FWIW I change the transfer case lube every 30k with Mobil 1 ATF. It's not hard with a transfer pump or suction gun to fill it.