Sorry, the ABS and the "AWD" system are completely separate. They, in this case, were full of hot air. Not only would the ABS light have no bearing on the operation of the TOD (AWD), but there is no way the TOD would seem like slipping, unless there is ice - and in that case, the transmission still engages.

if the slipping gets bad, put it into 4L (full time 4x4), thereby removing the AWD system from the equation. If it still slips, its not an electrical fault (other than in the transmission).