Yes it's the transfer case that will pop out of low range sometimes.
If I hold the lever back and put the jeep in reverse and back into forward it will usually lock in and stay.
My concern is, if it's not engaged properly then gears are not seated correctly which will lead to premature gear failure.
My jeep has a automatic and I use 4 wheel low most of the time in the hills to avoid riding the brakes on hills etc.
I bought the jeep as it currently is and it's the first one I've had. FYI, so far I love it.
It currently has 35" tires which is why, I'm sure, they put the body lift on with the suspension lift.
With all the posts I have received about body lifts, I'm probably going to drop it back down once I wear these tires out and go to a smaller tire.