Rubicon Front Locker Permanently Locked

Still, it wouldn't hurt to eyeball the relative height of the f/r fill plugs. The front should be noticeably lower than the rear (I'm betting that's what Vinman meant to say:)). If they had been inadvertantly swapped front and rear, the higher plug in the front could contact the locker. And just as bad or worse, the lower plug in the rear could eventually starve the axle bearings of lube.

Good point. I'll check to make sure cover has the lower filler plug.
 
UPDATE:
This morning I tore it apart for the third time...phew...I'm starting to miss my old CJ. I took the carrier and axles and put them on my bench. Everything seemed to work as it should. Yet when I put it back together and turn the axle by hand it wants to lock or skip teeth on the locking mechanism. The axles won't spin freely like they should in open position. I did the toothpick trick with the plunger in back and removed it with a string once the carrier was in.
Its almost like something is binding and not letting the locking lug ring to go back far enough.
I found a picture in another post of a rear to illustrate....it looks like the same set up.
1579974664970.png
 
Are you saying it behaves normally on your workbench, but misbehaves when installed in the housing?

Yep...When I put the carrier back in the housing the washer that engages the locker is pushed in. It looks ok on the front where I can see it. I'm going to borrow one of those small fiberoptic cameras to see if its hitting anything on the backside. Also to make sure the plunger is where it needs to be. Ughhh….all this for an 8 dollar leaking axle seal.
 
I'm betting that plunger isn't properly positioned over the actuator plate. It has happened to me, I know the grief it can cause.
 
It has to be the plunger causing me grief. I thought I had it fully extended with a matchstick and string, but I need to tinker with it some more. I can't see anything else in the housing that would cause the problem. It'll be a few days before I can get back to it. I'll update when I get it fixed.
Thanks for all the input. I really appreciate the help!
 
Doug did you pull the plunger fully out with your fingers so it was past its usual resting position? The purpose of the toothpick is to hold it out FULLY extended against its internal spring to give the locker actuator plate enough room to get into position and the locker fully seated back into position before pulling the toothpick out with the string.
 
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Doug did you pull the plunger fully out with your fingers so it was past its usual resting position? The purpose of the toothpick is to hold it out FULLY extended against its internal spring to give the locker actuator plate enough room to get into position and the locker fully seated back into position before pulling the toothpick out with the string.

Yeah I did. I even took a set of inside calipers to measure the plunger fully extended so I could cut the stick to the right length. But now I'm second guessing myself...like maybe I didn't pull it hard enough...or maybe it got bumped when I was trying to install it, and it got behind the actuator plate. One thing is for sure...I'm getting a lot of experience taking the carrier in and out :)
While it was apart, I went ahead and did all the ball joints and the axle u-joints. All of them were a little tired and showing wear, so when I do get it squared away things should be tighter.
 
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Update:
I spent the afternoon getting the front end back together, and it all works well now---thankfully :)
The best I can figure is that the plunger was applying pressure to the locking actuator and causing it to lock. I made a new stick to keep it extended and then installed the carrier. Now its working great with no issues.
Thanks for all the input and advice. You all are the best!
God Bless,
Doug