You somehow put the rear selector gear in backwards. I didn't know that was even possible. The gear needs to be flipped. The straight cut gears go in the middle, not up against the rear output.
FYI, the input gear. The helical one that goes on the spud shaft. That is the one that is typically installed backwards. When that happens you don't gear high output to the rear. The selector gear has no teeth to mesh with. In this case you are getting the low range to engage when it should be mating for a direct connection.
What you have done is a new one to me. And I thought I had seen it all by now.