One day when I was showing off in my 72 K5,I put it in 4-LO without getting out to lock the hubs,and did some awesome burnouts and donuts in third gear--then heard a awful grinding noise,and the truck refused to move,no matter what position I put the transfer case lever in!--I had it towed to a local tranny shop,I figured I had wiped out the splined coupling between the NP-205 and the SM465,I had replaced on before that was damaged by worn splines on the tranny's output shaft--but the guy called me and said "I locked the hubs and drove it into my shop OK,so its not that coupling--I think you might have blown the rear end!...since I was low on cash,I told him I'd just pay him for the "diagnosis" and I drove the truck home in 4wd--I had another axle I could swap in it if I had too--but I found out the rear pinion flange for the U-joint had stripped out all the splines,nothing happened to the diff itself!--after raking out all the metal left behind in the splines on the pinion shaft,I was able to replace the yoke,I had one off a camaro 12 bolt that was the same..got lucky that time!..
You need to realize you multiply the torque two times more than usual in 4-LO,and one axle alone may not be able to withstand the loads..when its shared between both axles with the hubs locked,its a lot easier for them to handle the additional strain..