2007 m35x wheels locked

Fj505

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My wife drove her car to the store today when she was leaving the car wouldn't move it will move like 2 feet and then you hear something clank and it won’t move no more. It will also move 2 feet forward and then it locks up. We had it towed and the driver dragged it up the tow truck any suggestions on what to diagnose it is all wheel drive I’m thinking maybe the transfer case ? Any info thanks
 
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