Hello and welcome to JustAnswer!
Does the light flash all the time, or only if you try to shift into four wheel drive?
What actuator did you remove? How could you tell it was working like it was supposed to?
So the light only flashes when you try to shift into four wheel drive, it doesn't flash in two wheel drive?
Does it do this in four low and four high, or just four low?
The first thing you are going to need to do is use a capable scan tool to see what fault codes are stored in the TIPM, the module that controls the system. It will have stored codes which are going to be needed to diagnose the problem. There are several things that could be going on.
You may have a bad front axle disconnect actuator. Even if you can power it and move it, the internal position sensor could be bad.
The same goes for the transfer case motor. The resistance of the motor windings could be off enough to set a fault code and disable operation, and the internal position sensors could also be bad.
The wiring between the TIPM and the transfer case motor, as well as the wiring between the TIPM and the front axle disconnect could be open, shorted, or have high resistance and causing the problem.
It could also be a problem with the TIPM itself. There was a software change for the TIPM regarding front axle disconnect problems, and there have been problems with the TIPM's themselves failing.