I thought it was a bad line as well but dealer said it was not. Another person here shared a picture that looked like mine and it was an output shaft seal. Here is a picture of what mine looked like. Any chance your rig is 8/23 build date?I noticed a fluid leak last night while installing skid plates. Fluid had collected on the cooler lines leading to/from the transfer case... Couldn't find fluid above the soft part of the line, leads me to believe a problem with the line itself?