Are you sure it is a NP208 and not the factory installed NP203? Locking hubs are completely seperate from the transfer case so they don't determine how the t-case works. If you truly have a NP208 transfer case it would be considered "part-time", meaning you choose between either 2wd or a 4 locked position (not really suitable for dry pavement running), regardless of whether it has locking hubs or not. Having drive flanges like this is just equivalent to running around with the hubs locked in but the t-case in 2wd, which isn't an issue (most newer 4wd vehicles don't have locking hubs).