I don't plan to tow my X, actually the other way around. But I am curious with the N on the transfer case does if you can't be towed with the transfer case in Neutral. I understand that part about the oil not running in the automatic transmission because it the pump is connected to the input shaft. But if the transfer case in neutral, shouldn't that prevent the input shaft of the transfer case (IE the output shaft of the transmission) from moving? Leaving only the output shaft of the transfer case turning along with the rear end.

Doesn't affect me either way how it really works, just curious and want to understand.