I looked it up and you likely have a NP 229 transfer, which I've never had to deal with.
Just as a test, I'd take off the front drive shaft and put the transfer in lock and see what happens.
I'm guessing it is a full time, part time setup.
Just on a guess, does your passing gear work? The passing gear cable (or linkage) also controls pump pressure. If the cable or linkage is disconnected, the mechanism will set itself to the lowest possible pressure.
Remember you have to check transmission fluid level with the motor running. I know it's simple, but I tend to start with simple first, then move on to complex, then expensive.