Slight variation for mine... I always shift transfer case for towing with engine off and transmission in Neutral.
Specific warning in my manual about shifting into PARK with transfer case Neutral and engine running (which others followed below).
The attached printed on index cards 'live' in the Jeep - a reminder for me and instructions for anyone else that may need to do it.
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Greg
Not yet retired...
Florida (Michigan transplant)
2014 Hurricane 32A
2000 Infinity (previous)
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