Are the front wheels supposed to spin freely with vehicle on lift and transmission in neutral?

I’m working on a 2000 X5. Replaced the front suspension and axles. Looking to replace the front guibo as well. I have the vehicle on the lift, transmission in neutral. Front wheels are locked up. Rear wheels spin freely. Start the vehicle and put it in gear, rear wheels spin, front wheels don’t.

No known issues with transfer case.

Any help would be appreciated.

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2000 E53 4.4
2011 E70 35d