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Hard plastic line that seems to end with a banjo bolt on top of the transfer case, doesn’t go anywhere at the front end. Is it a breather that’s come unattached from a clip?
Seems similar to vacuum line up top, but is a smaller diameter.
The banjo bolt seems like a big deal just for a breather.
The loop is to prevent water from entering the breather. It should be mounted so the top of the loop is pointed to the sky, and the opening should be facing towards the ground. Check the other breathers as sometimes they fall out of place and melt on the exhaust. If this happens the TC and axles will over pressurize and you will notice small leaks out of the weakest seals. It's not fun trying to chase down all the leaks only to realize your breather is melted onto the exhaust or the vents are blocked.
you don't want them to slip off the firewall bracket - ask me how I know - cross country trip - transfer case breather tube slipped off my D1 - melted closed on exhaust manifold - pressure built up - blew out entire gear lube all over the chasis- like a free rust proof - not too many miles later the t-case emploded with no gear lube