will I still have 2WD if my transfer case fails completely on my durango?
Yes but chances are if the chain breaks it will shatter the case thus making it undriveable. As it is a 2002 there should be plenty of them in a salvage yard that would have a part warranty, that might be the fastest way to go right now.
Are you sure it´s the t-case ? Check bushings, tie rod ends, ball joints and drive shaft joints first. Not good to drive it with some extra noise you can always make a bigger mesh.
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