Physics: wheel slip during the torque split mode of a 2-speed (transfer case)

I have a basic question on transfer cas design. This is generic, therefore, I believe it is ok to discuss it. Everyone will learn after the discussions.

The question is about the torque split to the front axle and rear axle. I know the torque split is done by different gear ratios for the power to go to the front and rear. It implies that there is a torque bias for the driving torques to the front and rear axles. But, meanwhile, the speed of the front and rear axles must also be different. Slip will occur, right? Why do we have a device to produce a slip? In other words, at the first glance, it is hard to comprehend that the front and rear axle can have different speed when the transfer case is in this driving mode.

Please help me on this question. I have my own answer for this question. But, I hope to hear from others.

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