Sport HSE Popping or Clicking when accelarating

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OneLondonInSD

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Spring Valley, California
I have a 2006 RR Sport HSE -- After an oil change I started to hear a popping or clicking, or ratchet sound. First thought they did not put all the bolts back in the skid plate which was accurate but after installing the missing bolts still the same pop/clicking.

Checked transfer case -- it was brown chocolate looking, burnt, smelled like ATF Fluid. Replaced the fluid w/Royal Purple Manual Transmission Fluid. Remarkable difference, sounds good when changing gears and the thud during stopping went away.

However, still clicking/popping under heavy acceleration but it has improved.

Workaround: When I set the driving mode to sand/gravel which disengages the drive shaft and essentially seems like its in FWD - The popping is gone or very hard to reproduce. So am wondering which Axle to replace first or any other ideas and suggestions please.
 

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