If the R indicators are working then I don't think my adjustment idea will help because the objective of the adjustment would be to get them to illuminate. Sounds like it's time to head back down to Anchorage and go see Far North Rovers to have their used XYZ installed. If they have the right equipment (e.g. TestBook) they can read XYZ outputs. Did they do that when you were there yesterday?
Here is the RAVE description of the effect of a P0705 code (XYZ switch incorrect outputs) - Maintains current gear in low range, limp home mode in high range. Shift pressure to maximum, harsh gear shifts/engagement. P0705 illuminates both M&S lights and the SES light.
If you do get the FNR XYZ installed keep your old switch to rebuild when you get home and keep it as a spare, or reinstall it and rebuild the other one and have it as a spare. I keep one in my glove box.
Although they all look the same on the outside I've heard there as many as four versions of the XYZ internals. I've seen two different ones personally.