2011 Prowler 700 XTX - No power to rear wheels

Hello Fellow Forum Members/Guests,

In a bind and looking for help!!

1. Recently purchased a 2011 Prowler 700 XTX and noticed dash had 4wd light on display regardless of switch position. 2. Through troubleshooting determined that front 4wd actuator was unservicable and replaced it.
3.I successfully switched to 2wd I noticed that the bike didn't move and realized that I am not getting any power to my rear wheels.
4. Jacked up rear end and rotated the wheels by hand, they move together and turn the rear drive shaft;
5. When throttle is applied in gear the rear drive shaft will not rotate and you can freely rotate the tires like they are in neutral.
6. There is absolutely no sounds/grinding/friction coming from inside transmission when i rotate the drive shaft;
7. Drained oil and ran through a filter and there is no metal particles;

Looking at pictures of transmission internals can't understand how it is possible for the front to be rotating fine in gear and the back not be. Hoping that someone on this forum has encountered this issue and that the fix doesn't involve removing the engine and cracking it open. Thanks in advance for help.