The 2 issues could be related. If the front axle is rotating while in 4WD, I guess it could be putting the transfer case in a bind & not allow it to disengage. It's just a shot in the dark ... but possible.

I've not heard of those bushings going bad ... except during removal.

My first experience was when we were installing diff drops on a VX. The bolt was completely siezed inside the bushing. The bushing was completely destroyed by the time we got the bolt out.

My second experience was when somebody returned their diff brackets to me to be modified. One of the bushings was missing so I assumed the same thing happened.

The good news is that the bushings are available. I'll have to look up where I bought them from. IIRC they were about $10 each.

As far as how tight the bolts should be ... pretty friggin tight. I didn't look it up to see if there was a torque spec on those bolts but I just tightened them down as tight as I could. Schlep them down with penetrating oil real good before you start tightening them so that you aren't fighting against binding (just compression).

More bad news. If you do have to replace those bushings, you'll probably have to actually remove the bracket entirely. They don't exactly just slide in. You don't need a 2 ton press to get them in but you won't be able to push them in with just your fingers either.

If I were you, I'd just try tightening them up first. If the problem persists, then maybe look into replacing the bushings.

I've got a spare set of brackets sitting in my garage if you decide to go that route. I'd be happy to do a freebie swap with you.

BTW, have you changed your fluids lately. I'd make sure the transfer case & front diff have plenty of gear lube in them. Better yet, go ahead and drain them & replace with synthetic.