DSC 4x4 Inactive light

I've got a 2005 X5 4.4 and the DSC Inactive light recently came on (no other lights). When it comes on, it just pops up and stays on for the remainder of the ride. When I restart the car again the light is off. There are no noises and nothing feels unusual about the drive. After reading about wheel speed sensors I thought that maybe one was off because of tire pressure. I filled the tires and didnt see the light for about a week or so. It popped back up today. I took it to the shop and they say they are getting a Transfer Case code when running a diagnostic. I'm a little skeptical. I want to make sure it's not just the sensors or alignment throwing a false code or something like that before I drop $3200. Any ideas or suggestions?