To me, 2" and 3" body lifts cause more problems than they are worth. The transfer case shifter mount is bolted between the tub on the driver's side & the transfer case on the other. Your issue is that the body lift has lifted the transfer case shifter mechanism's driver's side mount side 2" higher than its transfer case side. It is now so crooked that the shifter mechanism is binding. A mounting bracket adapter is what you need.... or drop the body lift down to a more reasonable 1" height that doesn't usually affect the t-case shifter mechanism enough to worry about.