I ended up taking the car to my local Chevy dealer here in Chino, CA. The service adviser who I have been dealing with for years took a look at the car, went back on the computer, back out to the car, back on the computer, looked up and asked me if I had bought the car from their dealer. He was happy to hear the word "NO" come out of my mouth.
Turns out that Chevy has two different transfer cases available; one of which is a single speed transfer case (This will never tow), and there is an option to get the two speed transfer case that can go into neutral. My Tahoe came equipped with the single speed transfer case.
I went back to my dealer and explained the issue, thankfully I have done a lot of business with them over the years, they bought my Tahoe back with 1,200 miles on it and ordered me the corrected Tahoe that I can Tow.
Thankful the dealer stood behind their sale and did the right thing.
I will let everyone know what happens when the new Tahoe arrives in about 5 weeks.