Dana 18 Not Shifting Back Into 2h

My locking hubs

 

While this has nothing to do with your stated problem, ideally, you should have 1/2" stick out of stud past the lug nuts with a 1/2" diameter stud.
The minimum is 2 threads past the nut.
Please, consider installing longer wheel studs.
This is a safety issue; only reason I point it out.

 

Front Drive shaft is disconnected, I can drive it fine, no binding, slips in and out of 4wd no problem

 

Can you shift in and out of 4wd on pavement with the front driveshaft installed but the front hubs free/unlocked?

 

When the front is on jacks and my hubs are engaged I spin 1 tire but the opposite won't spin. Not sure if that's relevant

 

No. When driveshaft is installed I can shift to 4, but not out of 4

 

then it sounds to me like the issue is somewhere in the front axle. Most likely some sort of ring and pinion damage since you say the problem still happens when the front hubs are unlocked.

what happens if you leave the front driveshaft out, but drive around with the front hubs locked?

 

Noteworthy, inspect brakes and bearing on the side that won't spin.

 

Ordered a gasket, I'll take diff covers off when they arrive

 

Many OEMs specify RTV for diff covers.

 

Yeah! We want answers now!

 

Hilarious! I like how Jeepstar is more patient than all of us on this

 

It behaves like a good little 2WD jeep. No issues or grinding noise.

 

Before I took the front driveshaft out, if the hubs were engaged the driveshaft would spin while the jeep was in 2WD

 

I know this might be a stupid question . must have missed your axle swap thread
are you sure the gear ratios match front and rear

 

I'm still going with one end of the other not actually being 5.38s as thought.