4X4 grinding from 4H to 2H

I am reaching out to the experts because I cannot figure out my grinding issue.

Shifting my 4x4 was a little rough/was not a positive engagement. So I installed an Assy link today and followed the video. Shifts much better but I wanted to make sure it went into 4L. With the engine idling, it will move through 2H, 4H, and 4L and back down. However, going from 4H to 2H there is a grinding noise and I can feel the vibration in the shift lever.

Possible issues:

Installed the link on the middle hole but noticed the bolt touches the transfer case when in 2H. Does not seem to affect anything but maybe I should go for the top hole? I did reach out to Assy about this but waiting a response.

Has been sitting all winter and driven about 20ft even after the installation?

Need to replace fluids?

I can figure out how to post videos and send one if that would help?

Do you have a 242 tcase?

RCP Phx said:

Do you have a 242 tcase?

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Sorry should have added it is a 97 with a 231. The shift bezel indicated it used to have a 242 but at some point that was replaced with a 231 because that is what is stamped on the case. I replaced the bezel with one for a 231.

There really shouldn't be any grinding possible when changing modes, only when changing ranges which makes me think you've got the shift arm on the t-case 180* out.

RCP Phx said:

There really shouldn't be any grinding possible when changing modes, only when changing ranges which makes me think you've got the shift arm on the t-case 180* out.

Click to expand...

I apologize for my lack of knowledge but what is "shift arm on the t-case 180 out"?

The arm on the tcase that the bolt was hitting!