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Usually a worn shift drum in a manual tranny shows up as a "popping out of gear" when you back off the throttle, or de-clutch. After it does this for a while, the gears are damaged enough to allow it to pop out under load. When it first starts to drop out of gear in no-load, you can usually...

That sounds like a plan. It is easier to lower it with a chain rather than supoport it on a jack. Safer too.

Did you pull the rear body to get to the top of the case?

The transfer cases and transmissions are separate items on a deuce. The main issue I see looking at mine is the top heavy nature of the beast. I'm sure there is a transfer case jack especially made for deuce, probably a $10,000 item for Uncle Sam.

Thrill a minute. Get a really heavy workbench.

This is the manual I used: TM 9-2320-209-20-2-2, chapter 33. I am afraid the info is limited, if adjusting the linkages does not cure it, rebuild it!

OK. According to the troubleshooting manual, check the shift linkage. Make sure the linkage is not bent or binding. Make sure it is properly adjusted and that the shift rod is going fully into position. Take out the tunnel cover to do this. If the trouble persists, overhaul the transfer case...

You could have some wear in the transfer case. The old manual transmissions used to pop out of gear when the shift drums and the roller bearings started to wear out. Popping out of gear under a load can be several things on a mechanical setup. The transfer case shifter could possibly be out of...