Mini Countryman Hybrid Gearbox Issue

That sounds quite similar to an issue I experienced with my Mini Cooper. I also noticed some gear grinding, which I can only describe as similar to the sound of coffee grinding in the morning. Have you checked for any signs of oil leakage around the transfer case? In my case, it was a clear indicator of mechanical wear.

I haven't specifically looked for oil leakage. Where exactly should I be looking around the transfer case? Is it pretty obvious, or do I need to get underneath the car to see it?

Yes, you'll likely need to get under the car to inspect it properly. Look for any signs of oil residue or dampness around the seams of the transfer case. If the oil wear is significant, you might even see some dripping. Given the symptoms you described and my own experience, it's probably best to get it checked by a professional as soon as possible.

Thanks for the confirmation. I took it to a local mechanic and they confirmed the transfer case oil wear fault. They're quoting 330€ for the repair. Hopefully that fixes the gear grinding issue.