If you can move the front with rear and gearbox blocked then there is definately something wrong.
The transfer case is diff, and as with any other diff, if you can move one end with the other two blocked, something is wrong. The viscous coupling is there to provide diff lock.
As Ashcroft Transmissions put it:
"A common problem with the Range Rover BW transfer case is a “seized viscous coupling”. This can easily be identified by the effect it has on cornering, the tyres will “chirp” or “scrub”, as the vehicle is effectively permanently in diff lock. As a confirming check, put transfer case in “neutral”, handbrake on, jack up one front wheel and try to turn it, it should turn slowly with resistance, if locked solid the viscous coupling is seized, and will need changing before any damage to the diffs or CV joints occur."
They provide more detailed info in the technical part (as you quoted), here without any additions:
1) Secure the output shaft …
2) Apply a clockwise torque of 27 Nm to the (front propshaft) output flange nut. If no resistance to turn is felt, unit requires replacing.
3) If resistance to turn is felt, apply a clockwise torque of 20Nm to the (front propshaft) output flange nut for 1 minute, this should result in a rotation of approximately 25 deg – 30 deg. If no rotation or a greater force is required, unit requires replacing.
Note that in 1 they say output shaft (secured with handbrake or possibly both rear wheels on the ground and choked), not mentioning the gearbox.
th.