could just be the shifter. Last I checked you had to buy the complete unit if it is the newer design. Make sure all electrical is in good shape and no corrosion.
 
My old 78 IH had an air shift two speed axle. When that started "kicking out" it was a major rear end rebuild.
All the other old trucks I had/worked on had the electric shift with the little oil reservoir that was supposed to have 10W in it, but liked to get heavy rear end oil leaking into it. I would take the cover off, flush out the heavy oil, and refill with 10W, and be good for the winter.
Now I've got a truck with a newer style electric shift which takes no oil. It's an off road farm truck, and I resisted getting into the shifter, which worked terribly, as I was afraid it would be another rear end rebuild, which this truck isn't worth. I finally got into it last year, and found a bad circuit board! There's a little circuit board in there with goodies soldered to it, with a couple of tiny tiny micro switches on it also. It was clearly junk. I replaced the circuit board, and it shifts great! Best two speed shifter I've ever had!
 
If it was only kicking out of high, I'd say it could be a bad shifter. Popping out of high and low means the rear end is shot.
 

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