It can if:
The Ratio Change Motor Switch pack is duff telling the system it is in high when it is not
or
The Ratio Change Motor Shaft has snapped allowing the Switch pack to register the correct position of the motor shaft, but it is not actually driving the Transfer box
or
The Ratio Change Motor is duff
or
The Transfer Box ECU is Duff
, seems to be going through gears though. i had run through both boxes whilst sitting stationary which is why im wondering if its stuck in low lights on low side beep 3 times and flash as does in center but not in high
id go with saint sounds motor or ecu prob,does the selector panel flash when switching ? crawl underneath and check ,wiggle wires on motor itself could be a bad connection