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The only place for a coil spring is up Zebedee's arse
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My 1995 4.0 has a weird shifting issue that I'm currently experiencing now. The transmission goes through all the gears normally and smoothly but it does hold onto designated shift points. For example 1st to 2nd will shift at 1700 rpm, 2nd to 3rd will shift at 2,250 rpm. When I plugged in the faultmate, the transmission thinks its in low range even though it is in high. The transmission also holds the gears whenever I let go of the accelerator pedal. Also, whenever I press sport mode, it the sport light in the center console lights up dimly without any indication of sport on the dash. The transmission also skips 2nd and 3rd in sport mode hence its smoother, it goes from 1st to 4th immediately. I also have a transfer neutral warning appearing on the message center whenever I turn the car on. Searching in the forums makes me think its the Transfer case ECU going bad. I already have two on order, just waiting for it after this quarantine lockdown we're having. I have driven another P38 and its a completely different experience. Hopefully the TCU solves the problem but I'm wondering if anyone on here has experienced the same thing? Thanks everyone! :)

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It sounds like your xy switch may be the cause of some of your problems at least.
Worth checking the adjustment is correct first.
The A/C drain tube is just above it and the switch can fill with water if the breather tube is not connected.
The transfer box needs to be switched between high and low ranges periodically. I do it every month or two when I remember. I run the car in low range round the block. Stopping and switching between high and low range. It keeps the mechanism free. If it hasn't been used for a bit, it can jam and burn out the solenoid. That in turn will eventually take out the ECU with it.

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it's the grease in the servo motor for the HI/LO that turns to concrete and burns the motor out..

As Dave3d says it's really a good idea to shift between Hi and Low frequently to stop the grease solidifying.

XYZ switch seems to be atleast part of the issue.