[CT2500HD]

The end links are the same as what you'd see on lift gate struts- metal ends that pinch a ball joint.
I would either take some pliers and pinch those two metal flaps together closer to retain the ball end they connect onto OR look up the upgraded transfer case linkage rod, which does not have those type of ends- they are big blocks of nylon with a similar joint to grip the ball-end.

There's multiple part numbers I found for 2004 2500:
https://www.gmpartsgiant.com/parts-...arts-list/2004-chevrolet-silverado-2500-hd-4wd/transfer-case-shift-control.html

Scroll down to "ROD, Transfer case shift external shift control"
There four different parts, you'll have to check against your RPO codes.
Each are about $25.

 

[CT2500HD]

Cool. Topic was covered a little while back here, you can see the upgraded nylon ends:

2011 4x4 floor shift problem

 

[CT2500HD]

can you not fabricate a better linage with attachment points?

Or upgrade to the electronic version!

Problem is getting the attachment points....

I would think that switching to the electronic version would be very cumbersome and expensive. I would need all associated wiring, electronic buttons, the NP263 transfer case as the NP261 is otherwise identical but manual shift, and I don't know what kind of reprogramming the computer might or might not need.
I would rather climb under the truck for the next 4 years(time I anticipate ownership) than spend the couple thousand it would take.

One of the reasons why I got the WT trim was for the manual transfer case shifter (along with all sorts of other features I did NOT want that would just break in time). How many hundred threads are there on this forum about electrically-actuated transfer case shifters malfunctioning? Why do we think Jeep still uses only manually-shifted transfer cases in all their Wranglers?