To wrap this post up: Dealer determined that the damaged harness had shorted against the front drive shaft, and blew the #66 fuse on the bottom of the fuse box. I checked this fuse but it did not appear blown, when I inspected the fuse when I picked the truck up it was nearly impossible to tell...
That would make a lot of sense considering this is the wiring harness running to that connector:
Somebody smart decided to route it around the front driveshaft.
I have been meaning to get a code reader for this exact reason but I do not have one on hand unfortunately. I am starting to thing the 4x4 control module might have failed somehow.
I did indeed unplug the connector which of course threw a check powertrain light. Inspected the plug connections and everything and put it back together and still no change.
So engaged 4x4 yesterday morning everything functioned fine and then the 4x4 system decided to just shut off I guess. Dial selector has no lights/no functionality. Truck is stuck in 4 high. Checked all fuses, connections, etc. No check engine/service lights. The only thing wrong that I found was...