4wd mode indicator

[Danen75]

Hi brains trust,.
Took the old girl for its first trip to Fraser over the weekend and had a small issue I wouldn't mind resolving. Every time there was any sort of water crossing, even just a small splash from a tiny run out in the beach, the 4wd mode lights would start flashing with a variety of light from the 4-Lo flashing to everything flashing. No problems driving, stayed in 4-Hi the whole time and mechanically never missed a beat. Now I'm suspecting it was water in the wheel sensors/connectors but is there anything else I should be checking whilst I'm at it?
Pic for attention

 

[Old.Tony]

What year model is that? 2012? 2013?

I can think of two possibilities.

First, you might check the CV boots, but when you're driving on loose shit and one wheel starts doing stuff the others aren't (eg slipping), the onboard systems can chuck a wobbly.

Take the car to a grassy area and throw it in 4HI. Any dramas?

Second, add a wire from the stereo to a dash mounting bolt. It's possible that the earth is a little flaky for the instrument cluster and it's grabbing earth any way it can through any system. Adding this wire removes the possibility.