Transfer Case Issues?

I have a 2007 CrewMax, 5.7 V8. A month ago, I started my truck and got a flashing 4 hi on my dash, even though the truck was in 2WD. I drove it around for a bit and the light went out, but I was unable to put the truck into 4WD. I wasn’t worried because I don’t need 4WD at the moment and I knew it was in 2WD. Well today, the 4 hi stayed flashing longer than normal on my way home from work, and at 65 mph, the flashing 4 hi was replaced by a flashing 4 lo and alarm. My torque converter took over and killed the transmission. After I pulled over, I was able to get the torque converter to release and drive it to a shop. My question is, has anyone else had this issue? I know that the truck was not in 4 lo (or 4 hi) but the transfer case was sending an erroneous signal which then caused the truck to freak out. I don’t have the ABS, VSC, or check engine lights that others have had. Only 4 hi flashing and then yesterday 4 lo flashing.