I have an issue when i engage my 4wd gear to high or low, the 4wd indicator keeps flashing. However, the 4wd works perfectly. I've changed the 4wd solenoid that resides in the engine bay (which is a main failure point in these models) but the issue still exists.
Since my 4wd system was working as it should, we dug down to the systems that detect the 4wd is engaged/ disengaged.
When the vehicle was plugged on to the computer we noticed that this particular model takes input from 2 switches to indicate if the 4wd is engaged successfully. One switch is at the bottom of the 4wd selector (on the transfer case/ transmission) and the other sits next to the free wheel clutch on top of the front axle. We noticed that the switch that sits next to the free wheel clutch which detects if the free wheel clutch is engaged into 4wd mode always reads as off.
To diagnose, we first removed the switch from the axle and tried pressing it to see if it changes anything, but it didnt and then we disconnected the switch and manually bypassed it to check if it holds the indicator steady when put into 4wd, AND IT DID!. Since we confirmed that the wire harness is good and the switch is the culprit, We ordered the replacement from Japan.
However, as a temporary solution, we dipped this switch in kerosene for a couple of minutes and manually pressed and released to get any grime that may have gotten through the years and plugged it back in. Lo and behold it started working again! so for those who could not find this switch for purchase, this can be a solution if your switch is not that far gone.