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Do you get the grinding noise without the PTO engaged and trans in 1-5 and tc in neutral? If no grinding then my best guess is it is the PTO . If the grinding continues without the PTO engaged try adjusting the tc shift lever as it may be still trying to stay in high range. If I was closer I...

Make sure your transfer case is in neutral. If the truck is at idle it may not operate the boom or winch. The transmission will have to be in 1-5.

There is also a set screw on the gear that fits not the transfer case output shaft that must be tight to hold it into place. This had also backed out on mine. I'm not to far north of you so if I can be of help just pm me.

Go under the truck andake sure your linkage at the PTO isn't bent. If not then pull the PTO off, restart the truck make sure the transfer case output shaft is turning. If it is then check the PTO shifter fork is not slipping. My shifter fork set screw had backed out and wasn't engaging the PTO.