Mine wasn't working either so I pulled it out to check.
Low quality aluminum casting on steel axle with no insulation between the two meant they got seized together a bit. During the removal, parts of the housing was left behind on the axle.
I could feel the electric motor moving but the gear wasn't moving, which was a good sign... ish.
I pulled the cover off, or tried to at least. Rusted/seized screws.... Thank goodness for snapon parrot pliers. Probably the most valuable pliers ever
During the removal of the cover, it also broke apart... mainly the collar where the tear was got left behind.
That was exactly why my locker wouldn't engage.... gear shaft seized to cover.
I built another cover out of aluminum, threw a chunk of aluminum rod on the lathe and turned up a replacement piece. had a friend tig it all up. Opened the motor cover to see if the magnets were about to fall off (common problem) and sure enough 2 of them came off with a gentle prying. Jb welded them all back on, lubed everything back up, RTV sealant (surfaces were too crumbly for an o-ring and aluminum was breaking apart too easily... strange but oh well)
I did put o-rings between the shaft and collar in the cover as well as collar and axle (machined a groove in the collar for that).
Found a picture of roughly where you want the position the gear as you are assembling. Plugged it in, turn the key to on, neutral, 4lo, engage locker. It worked. So then I stuck a screw driver into my axle to move the shaft to locked position and reinstalled.
hope that gives you an idea of what i'd imagine is the borderline rebuildable locker actuator.
Overall it's a tough component internally. I don't see how the gears could shred themselves and there is so much reduction that the motor is more than capable of handling it for decades. The only 3 downfalls are the crappy glue for the magnets, weak housing, and horribly crappy grease.
I just threw some molybdenum grease which I had lying around, it's used in the final drive gears of my motorcycle so must have good shear strength, it's slippery and water resistant. But at this point even wheel bearing grease beats the dried up grease in there.
Oh and check that the breather hose isn't plugged
Good luck!