My transfer case output shafts had no perceptible wear or slop.
But,
During teardown, I found all bearings blue from over heating, and the bearing cups lightly pitted.
What supprised me the most, was that the bearing cavity of the idler gear was packed completely full of black, varnish like dirt.
How did that stuff get in there?
With all of the crud inside of the idler gear, oil could no longer have passed into the oiling hole of the idler gear.