Can my transfer case cause my vehicle to not shift into any gears and cause my park not to work

What is your question?

There was a grinding and popping sound coming from underneath the the vehicle, had someone look at it and they said it sounded like it was coming from the transfer case, they took out the the smaller driveshaft that goes into the transfer case and the sound got a lot quieter and the popping didn’t happen as often so we determined it was the transfer case then after some driving the vehicle like that I was on the highway and all of a sudden pressing the gas wasn’t working it was just revving I pulled over and the vehicle also started rolling back in park and made a grinding sound going into park when I got the truck home I took out the transfer drain plug and there was hardly any fluid in it and they’re were metal shavings/chips I got out with a magnet could my transfer case cause the truck to not want to move anymore or stay in park or is my transmission likely messed up too?

How long has your 1997 Chevrolet K1500 had this problem?

Couple days