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The trans must be in neutral because it has no park, the truck cares not what the transfer case is doing as far as starting goes.

No problem, everyone here is happy to help. Here is the link to the technical manuals. It is a good idea to familiarize yourself to your new toy, the operator manual is the first one and could save you time and possibly injury. https://www.nsnlookup.com/equipment-intelligence/land/hmmwv

Put it in H, yes when it is in neutral it is in neutral H= high range HL means it is in high range LOCKED. There is a differential in the transfer case that allows the front and rear drive shaft to move at different speeds but it is still pulling on both differentials in H L= low range locked HL...

Welcome to the forum. First it is always in FWD unless it is in neutral. it is a "full time" transfer case, you can also select HL (high lock) and low (which is locked) Probably simple driver error, are you shutting the truck off when trying to shift the transfer case?