Agree that it sounds like something not unlocking in your front end or T-case.
Try simple first.
Check fluid levels
Engage 4H to 2H several times. Maybe try turning on pavement in 2H.... see if it's not stuck in 4wd?
98 TJ, 4.0L, 5 Sp., 4" lift w/ 1.25 BL, 4.56 locked gears, 33" Cooper STT's
02 QCLB Dodge Diesel; 602 HP/1266 ft-lbs