This answers the question then, if it's driven from the input shaft, it would never work, the trans would be in park. I was never successful in finding an exploded diagram of a transfer case, but I'll take your word for it. :)
Thanks.
Sorry in advance, resurrecting a 2+ year old thread.
I have been asking myself this same question why the 4runner owners manual for a 5th gen trail says no flat towing.
I myself have owned a 2016 4runner trail with the manual tcase shifter with neutral position.
Also I am almost certain that...