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i will give it a shot. but i doubt it, i just serviced the transfercase. but i'll do the test. i mean it doesnt even try. like a switch was thrown. and i have no engine braking in first gear.
I would certainly check the T-case as for engine braking to work, the axle has to push against the engine which is what I am describing to you about the test. It is in the way the range gear has its bevel cut on the teeth and how the gears engage.
Wonder if he ever found or fixed the problem? I just developed same problem after driving the truck for an hour. Lost reverse and was stuck at pharmacy. Took 15 mins of sitting parked to rev the engine enough in reverse to get backed out.