Ok, your year, with the NP231, would have come with a vacuum disconnect D30 CAD front axle.
Your grinding noise could be the disconnect collar doing weird things with the inner and outer axles on the passenger's side.
I doubt that would cause transmission to drop out of gear.
You must have a good vacuum system to keep things working, especially due to the D30 CAD--no vacuum, no 4x4.
The vacuum reservoir is behind the front bumper, passenger's side. The vacuum line to the reservoir runs behind or under the battery, and likes to break in that area. Relocate the reservoir into the engine bay. I put mine under the rad pressure bottle. Gets rid of about 5' of useless vacuum line. Test the vacuum system, intall a "T" and use a vacuum gauge. Run the engine for a few minutes, then shut off the engine and see how long it maintains vacuum. There should be a vacuum check valve and you want to "T" in past it. If the system won't hold vacuum you need to find the problem(s) and fix them. The there are three attachments on the shift collar motor on the axle, and the motor itself is problematic. Also, the brake power booster will eventually develop leaks. Test it, engine off, pump the pedal 4-5 times and hold pressure, start the engine, if the pedal drops about 1" under your foot, it is working, if not replace it.