AT Fluid Leak question

Hi all,

I was wondering if you could point me in the right direction to understand why there is a good amount of what appears to be transmission fluid dripping from this part. I'm pretty sure this is the transfer case and this is some sort of mechanism that assists in the shifting into 4x4

I'm really not sure if it's coming from that part itself or if it's just dripping down from the top. I assume transmission fluid does not get into this part so it's likely just the end of the road for a drip that's happening higher up in the transfer case.

Am I on the right track? Likely just the seal on the transfer case leaking?