I often get the flashing lights when shifting back to 2wd from 4H (non-locked). I generally shift the trans to neutral, then shift the t-case to 2wd, then engage the trans again. Blinking stops. If it continues, there is a whole troubleshooting process you can go through, which will solve your problem. It was posted here in the last few weeks, with pics! <img src="/forums/images/graemlins/kewl.gif" alt="" />

1991 HZJ77, 1999 KZJ90, 1999 UZJ100, 1992 M101CDN2
https://www.thegearheadproject.com/category/jdm-journeys/