if 1 wheel is spinning with no center diff lock all drive will be lost, with center diff locked you need 1 wheel on both axles to spin to lose drive , traction control will brake a spinning wheel which means that the other wheels dont lose the torque that would have been lost through the spinning wheel/s and so forward motion is maintained

That is possibly the best and simplest description of the system that I have read :5bcheers2:
 

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