Skoda Octavia Hybrid Transfer Case Issue

That sounds frustrating. When you say 'transfer case limp mode', are you seeing specific error codes related to the transfer case control module? Gearbox slippage can sometimes be a symptom of torque converter issues, but if it's linked to the ABS, that suggests a more complex interplay of systems. What ABS-related diagnostic trouble codes are you getting?

I do see ABS-related diagnostic trouble codes but what is a torque converter? And how might that relate to the transfer case?

A torque converter is a type of fluid coupling that transfers rotating power from an engine to a rotating driven load. It allows the engine to spin somewhat independently of the transmission, which can smooth out shifts. If your ABS is faulty, it can absolutely cause consequential faults that trigger limp mode. The control module might be misinterpreting data, leading to the transfer case issue. I advise taking it to a workshop to get this checked out.

The diagnostic trouble was due to a faulty ABS system. After recalibrating the ABS, the transfer case issue disappeared, and the gearbox is behaving normally again. Fortunately, it was covered under warranty, so the eventual repair cost was 0€.