Thanks for the reply
I don't think water would have gotten in anywhere. It has very low miles, doesn't get many rough rides (usually very tame trails) and is stored inside. I do wash real good after each ride but that shouldn't cause water to get into anywhere it shouldn't.
I'm pretty stumped on it, also. Not seeing anyone else having the same issue online or anything. I don't want to start replacing parts that aren't needed to be replaced.
Also while troubleshooting I did remove the two bolts holding the actuator onto the diff and noted that the actuator was sealed onto the diff really good. I was not able to pull it off by hand and did not use any tools to try to remove it, i just put the bolts back on. in my mind, that was enough to prove that no water had snuck in behind the actuator or anything like that.