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When these vehicles were first made there was 80/90 gear oil. As the oil was improved with additives, they started adding GL numbers. I think the current number is GL5. So, the first oil became GL1. Certain additives in some GL5 formulations harm yellow metals. Now there are GL5 oils out there...

Unless you plan on driving the vehicle in temperatures -15 degrees and lower the lube order for the transmission, transfer case and differentials call for 80/90. The transmission calls for 80/90 GL1 oil, the newer stuff last time I looked, is 80/90 GL5. It has to do with the additive...

The sprague could have been damaged from coasting backward when in a forward gear. The sprague may also be “gummed’ up. The inside of the transfer case and gears can develop a film of old oil. This film can cause the sprague to act erratic. Drain the old oil out. Fill the transfer case with ATF...