NP231 pros, can you spot the problem?? Cuz I can't!

I rebuilt the t-case with all new bearing, seals, chain, mode fork and installed a rugged ridge SYE kit. Now it jumps out of gear and makes a grinding sound in 2hi and 4hi bit not 4lo. Also the upper inside side if the chain is wearing weird as you can see in the pics and that's just after a 10 miles.







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