What could be wrong?

Possibly the scanner was outdated. It should have had a section just for ABS and traction control. If the scanner is a good one then access the live data function and read the signals from the wheel speed sensors, 4WD control module and tire slip from traction control. Then you will know if it's sensors, wiring, control modules or the ECM has taken a dump. I realize this was a general answer but you didn't show year,make or model.

So sorry. It's a 2015 jeep compass 4wd latitude. Thanks for the answer!

Try the Jeep Compass forum, they might have an answer for you. Personally I will never buy another Jeep. Transmission went bad, heater blend doors, engine problems, 4WD troubles, even the radio speakers were junk.

I wouldn't have bought one either, my dad bought it in 2015. After he passed I inherited it. Never been a fan of it for a couple of reasons, radio went out about a year ago. It only has 51k and now transmission issues. Thanks for your insight, I appreciate it!

If you don't have any sentimental feelings over the vehicle and your having issues even with that low mileage, I would service the transmission and dump in a can of TransX when adding transmission fluid, this will clean up and soften the seals inside the transmission and hopefully give it just a more little more time so you can sell it. Then stay away from Chrysler products as well as anything European. HTH