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Hello, I'm Chris. Thanks for visiting Just Answer.
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It would appear that the problem was very minor. Even though the wiring harness for the transfer case encoder motor looked undamaged, I opened up the surrounding black plastic loom to inspect it. To my surprise 3 of the wires had been cut, probably when I was aligning the front engine mounts and I had taken loose the rear mount to facilitate that. (I was working alone) The weight of the trans must have dropped on the harness and cut the wires. A little solder, flux shrink tubing and zip ties fixed the problem and the Hummer runs very well now.
Glad you resolved it.