Here's some more madness. It went away.

She turns as smooth as butter.

So two days ago, I changed the transfer case fluid and notice that there was water in it. That did not resolve the issue. Later that day, I went to some trails and put it in rock climbing mode so I could watch the lockers open and close on my nav screen. The issue was still there. Drove it to my home town which is 120 miles away. The issue was still there. Drove her back home(120 miles again) and parked her overnight. Yesterday morning, problem gone.

What gives?

If this was a diff it would not go away right? Could it of been a locker issue?

 

 

Not had the issue you are describing on my LR3's, but I previously had a Jeep GC with a rear diff clutch pack that was on its way out. When cold and if turning slowly I got a lot of noise from the rear and the inside wheel would jump and skip, so in a way similar to your issue. I've also had CVs go out and you will nearly always get a clunking sound as you turn into that wheel. When my hub gave up earlier this year it was just an increased level of humming from that hub as you loaded it up on turns - at speed though, not when going slow. I would suggest it sounds like a diff issue. The one things that still puzzles though is the slapping noise you described in your first post sometime after you turn everything off - strange!!

 

The slapping noise was confusing as well but has gone away too. After I changed the fluid in the transfer case, I made a really hard u-turn while on my trip. I had pretty much gotten to the point where I was hoping that whatever was causing the noise and clunking would break so I would know what to fix. But I think that may of helped the clutch packs come unstuck.

The slapping noise sounded like it was coming from the transmission but I wonder if the transfer case was acting up if that would of been the cause.

 

So to bring this one back from the dead, I am having the exact same issue, down to the slapping noise under the vehicle after shutoff. When turning sharply and moving slowly it will try to drag a front wheel. The catch is that my lr3 does not have a locking diff, so I think that eliminates the clutch pack diagnosis.

For me this started last week after I got new tires (275/65/18 up from 255/55/18) and drove down a fairly muddy trail. I am running a max GAP lift, which is probably 1.5-2" for my vehicle. I had it in offroad height for the trail and it was a little bouncy, so I suppose it is possible I pulled a CV axle apart. My understanding is that my lift is much smaller than is commonly run so i was not too worried at the time.

I replaced the fluid in both diffs and the transfer case about 9k miles ago. The front diff would only take about half the fluid it was supposed to, so something is definitely going on in that diff. It also looks like it was put together with RTV. I have already purchased a front diff to replace it with, but haven't bothered as it has been working fine.

My initial feeling is that it is the front differential, but the slapping noise under the car by the transfer case has me wondering if it could be something to do with the center diff. Could the center differential in the transfer case be sticking? The noise sounds very similar to the noise the air solenoids make, but louder and more metallic.

I also did some research into the issues people were having with the DSC engaging while turning because it feels similar to that. I am not getting any lights on the dash and turning off DSC does nothing, so I don't think it is that.

Should I try driving in tight circles until it goes away or has anyone thought of a more scientific way to diagnose this one?

 

Well to give this thread some closure, I found the issue. For me, and probably the OP given how identical the symptoms were, it was the center diff within the transfer case. I scanned with my IID tool and it gave me a "Clutch adaptive learning at it's limit" error from the t-case. I ran the clutch calibration from the IID tool and my issues were fixed.