Outer Limits 4x4 Board

LJ78 with stock electric rear locker.
Motor and wires seems to be OK - it makes sound when I turn the knob OFF->ON and ON->OFF.
But the axle doesn't disengage - I can see my tires chirping while turning!
What can I do with that?

Unbolt the motor and see if you can manually disengage the dog clutch, you may need to jack the rear to unload the clutch.
J Top

Thanks!