Tires: four wheel drive dump truck tires, tire diameter, center diff

Question
Is it true that different tread on my rear and front tires can blow my transfer case??

Answer
Alisha.

Yes, - and this applies to AWD cars as well.  If there is enough difference in tire diameter, it will strain the center differential and could cause it to fail.  In your case, you don't have a center diff - you have a totally locked transfer case - which is worse.