For G2 owners who aren't familiar with the G1, the G1 had a "VTM-4 LOCK" mode that could "lock" the rear wheels to help get you unstuck. It would only work in 1st, 2nd, or reverse. Using it on dry pavement results in increased wear and likely damage to the VTM-4 unit.
Just to be clear about this, I view VTM-4 (I don't know enough about iVTM-4 yet) like a conventional, mechanical 4wd system. Only use it in slippery conditions so you don't get bind in the driveline that is not easily removed by a tire slipping on the terrain.
You can engage manual lock on the G1 and hear the slippage occurring when you back up and turn at the same time in gravel. If that slippage can't occur (as on dry pavement), the driveline will bind and something will give somewhere. Ergo the admonishment to not use 4wd/locked diffs on dry pavement or high traction surfaces.
That being said, I see no reason for any damage to occur if you use manual lock (or the G2 equivalent) on dry pavement as long as you go in a straight line and have equal tire pressures all around (so that all tires travel the same distance). Then again, I see no reason to engage it on dry pavement anyway (unless you are testing something)!