[jkeady]

So is this an open diff (as was asked already)? Because if the front diff is doing it’s job, you should be able to turn one front wheel and the opposite side will counter rotate with both tires off the ground. With only one wheel off the ground, turning that wheel will transfer motion back to the front drive shaft.

With hubs locked, both front wheels off the ground and free to spin (no seized brakes, bearings, etc), open differential, the state of the transfer case does not matter at all: you should be able to spin one front wheel if the differential is doing its job.