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When you have air leaking out of the transfer case vent the sprag shaft seal to transfer case is leaking. Some rebuild kits come with the new seal that we can replace when we R&R the sprag piston and cylinder.

Your sprag cylinder need R&R. As someone said no O rings but TM calls them preformed packing. You can wait on buying parts if you want because you might just need the two preformed packing and two new copper crush rings. Or you might need the kit that has new cylinder to if yours is rusted out...