tranny issue, need input

[LUVMYBRAT]

So the brat was makin a grinding noise, kinda like when axle splines get worn and stripped in hub. Axles are tight and so I searched, found that 4x linkage was where its at. It is acting as if not fully engaging back into 2wd when the grinding occurs. So been driving in 4wd which isn't a big issue but has any one else had this area go bad? Ive tried adjusting linkage and even diconnected and tried to manually move linkage to get locked in to 2wd. the linkage appears to be hitting or coming very close to to case bolt directly behind the arm and I cant get a full lock into 2wd, acts as a slipping clutch only lots of grinding. One question I had, is the arm that bolts to the shaft coming out of tranny cammed? or made to only fit one way? was wondering if maybe it may have turned a bit on shaft not allowing it to engage all the way?