I had the same issue on my 05 YD.
The info on the invoice is:
FP-NUMBER 15808595 DESCRIPTION LATCH 17.198
The dealer called it an internal failure in liftgate actuator.
The part itself was about $260 and the total bill was about $320.
Hope this helps.
That may be your problem, the McGaughy kit. I never heard of them being the "best" brand available when I researched lowering kits. Everyone pointed to the Belltech kit, and after 3 years of use, they were right.
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I've got an 05 Denali with the Belltech 2/3 drop and spindles in the front. I've had it on for 3 years and it rides better than stock. I still have the auto level hooked up and even pull a 5x10 trailer from time to time with no issues.
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