Quoting James:
Turns out the TC has no fluid in it. How would this happen? How long can the TC go with no fluid (and not making any noise).
I replaced the fluids before my vacation about 6 months ago. I took the car on a 2000 mile trip. I've put about 4000 miles on the car since then. And I drove the car two hours to Syn with no weird noises or problems.
I have no weird leaks on my driveway that should TC leakage and he has none on his.
Anyone have any ideas? Adding fluid to the TC cured the problem though he says it's still make a weird noise... Probably due to it being driven dry.
If the noises are still coming from the transfer case as shown in the video, you 100% have some bearing damage. No bearing can be run dry for any length of time and survive. Best to pull the parts and inspect, or replace the TC. If the car did not exhibit these noises when you owned it, you didn't know about the issue, nor could you have. Not a super costly repair, just an unfortunate circumstance to come about in the timeline of the vehicles life.