It is possible that the switch that turns on the light on the dash is buggered/sticky. Mine is and I get no light but I my CDL is definitely engaged.
Easy test for it. Engage CDL, lift one wheel making sure you chock the opposite wheel and see if you can turn the lifted wheel. If you can't, CDL is engaged, if you can, CDL is not engaged (or something is broken somewhere between the transfer box and that wheel).
Hopefully that gives you a better idea of what's wrong.
Chris
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Chris Phillips
Offroader: 1996 Discovery 300TDI (The Green Donkey)
Missus: 2010 Discovery 4 TDV6 (Fancy thing)
Just 'cause: 1999 Discovery SE 3.9L V8 (Makes fun noises, sometimes...)
Spares: 1998 Discovery 300TDI (Only vehicle actually in the garage..........)
Run around: 2001 Nissan Pulsar ST 1.8L (Soul crusher)
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