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Locking the hubs does just that, locks the hubs. It does nothing with the transfer case. In a perfect world our auto-hubs lock when we flip that switch to 4x4. In the world of rotted vacuum lines and internal seals, that switch becomes nothing more than an electronic stick for the t-case. Thankfully, Ford engineers planned in case of failure and gave us hubs that we could operate manually. Unlike the old chevy magnetic ones that would simply shatter, or the old Dodge ones that you would have to crawl under it and insert a bolt to lock the hubs, we have normal manual hubs.
If you're not getting the dash light, then the motor is not engaging the t-case. The light has nothing to do with the hubs. It only identifies what position the t-case is in. With leaking hubs, the t-case can be in 4x4, and you'll still be in 2x4, with a light telling you 4x4. I strongly suspect a bad relay. If new relays don't fix the problem, then either the dash switch is burnt, or the motor is bad. If new relays don't fix the issue, I suggest a 9v battery to test the motor. If the 9v moves the motor, but the switch doesn't, then the switch is bad. 9v batt won't engage the t-case, but the motor will move, signifying the motor is good.
2002 F250 CCSB 4x4
PHP Phoenix, John Woods VB, NUC bypass, 6637
"No country can be called free which is governed by an absolute power;
and it matters not whether it be an absolute royal power or an absolute
legislative power, as the consequences will be the same to the people."
--Thomas Paine, Four Letters on Interesting Subjects, 1776