Thanks Jeff for moving this post over here and getting added input from these guys. I messed with it some more and all splines looked good. If I had the truck jacked up and I lined up the splines, the actuator would pull the collar over no problem and would be engaged. But if they weren't, by the time they did become lined up, the inner axle would be pushed away.
But enough of that conversation.
With taking the input of everyone, I went and purchased a locker and the extended axle shaft for the right side. Just finished install of that yesterday and all is working as should be