I'm not sure that's accurate. The actuator should be locking the splines together in the front-end as soon as you rotate into AUTO, and the transfer case clutch pack fork is is slightly engaged, for immediate action. The low clutch pressure helps prevent binding during tight turns on pavement in AUTO.
The two speed sensors (one for each prop-shaft) monitor if there is any difference in rotation speed to detect F vs. R wheel slip, and then instantly apply more clutch-pack pressure via the TC motor-to-fork action. A 1/2 second delay in TC clutch lockup is waaaaay too slow to help with traction in a moving vehicle.
Before I swapped my front-end (baaad bearings) it was loud as soon as I switched into AUTO (or 4HI) while the vehicle was moving. Leaving the system in AUTO all the time is why the front diff. wears slightly faster than if you leave it in 2HI., and why you lose a tiny bit of fuel economy in AUTO vs. 2High
This post explain the previous-gen NVG transfer case, but the newer MP3024 (RPO code: NQH) functions similarly:
https://www.tahoeyukonforum.com/threads/4-wheel-auto-how-it-works.116141/