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Its probably an encoder motor problem or the switch it self. Take it to the dealer.
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Yup. If you're under warranty, I'd take it to the dealer. I've had the "Service 4WD" message pop up on mine for as long as I've had the truck (2000 Yukon, had it since 2008). Finally hooked it up to a code reader recently and was told the same thing. I'm going to replace the switch first, as it's cheaper and (According to my buddy) a common problem. The encoder is in the hundreds.