i have a pretty good idea with the 4x4 system you are dealing with from my few years of doing parts.
both outside hubs have fluid in them. you can start with putting in new fluid to see if that helps, but im going to guess that #15, the magnet, is bad. i cant tell you how many times i have had to order that part when 4x4 on this system wasnt engaging.

# Add Part# Description Quantity
1 5411608 Bumper 2 Usage
2 7041761 Strut, Front 2 Usage
3 5211115 Washer 2 Usage
4 7558402 Washer, Flat 10 Usage
4 7558402 Washer, Flat 10 Usage
4 7558402 Washer, Flat 10 Usage
5 7080367 Clamp 2 Usage
6 7542324 Nut, Nylok 4 Usage
7 7512365 Screw 4 Usage
8 7552901 Washer, Spring Lock 4 Usage
9 5810439 Retainer, Casting Wire, Strut 2 Usage
10 ------- ASM., FRONT BRAKE CALIPER, RH [SEE FRONT BRAKE PG. B5 FOR DETAILS] 1 Usage
11 3554509 Bearing, Tapered Roller 4 Usage
11 3554509 Bearing, Tapered Roller 4 Usage
12 3554507 Bearing, Tapered Roller Cup 4 Usage
12 3554507 Bearing, Tapered Roller Cup 4 Usage
13 5222193 Sleeve, Hubstrut Seal 2 Usage
14 7080306 Fitting, Lubrication 2 Usage
15 2410133 Coil, Magnetic 2 Usage
16 1820950 Asm., Hubstrut, Heavy, LH [42mm][Incl. 9,12-15,23] 1 Usage
16 1820951 Asm., Hubstrut, Heavy, RH [42mm][Incl. 9,12-15,23] 1 Usage
17 7041375-067 Spring, Compression, Black 2 Usage
17 7041375-293 Spring, Compression, Red 2 Usage
18 5243364 Retainer, Spring 2 Usage
19 5432871 Ball, Pivot, Bottom 2 Usage
20 7515339 Bolt 4 Usage
21 5132062 Spacer 2 Usage
22 ------- KIT, DRIVE SHAFT W/SLEEVE BTB [SEE DRIVE SHAFT PG. B2, REF. 12] 1 Usage
23 3610028 Seal, Hubstrut 2 Usage
24 5432872 Ball, Pivot, Top 2 Usage
25 5810291 Spacer, Rubber 2 Usage
26 7555749 Washer 2 Usage
27 7547104 Nut, Nylok