Adjust the linkage, put the transfer case in gear, if it still hits the pawl and stops then a few inches of backlash in the drivetrain is normal.
Now if you did really loose park then it's time to take it apart and look inside. It has been many years since I have been in one of those old 3 speeds, but look the mechanism over and see what isn't working. I think you can deal with most of the parking parts without actually having to gut the trans. Again been many years...