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Doesn't sound right.

The dash lights are NOT illuminated or flashing.
That's good, but let's make sure the warning lights do work in the first place. When the ignition key is turned only to ON, but the engine isn't started, do all the instrument panel warning lights, especially the check engine, the AT Oil Temp, and the AWD (or FWD) lights, come on, and then go off when the engine is started?

Was the car purchased new, and it only started to slip now, or is it a recent acquisition and you found the problem the first time you were on slippery slope?

If the car is a recent purchase, make sure the whole rear propeller shaft is in place. (Wouldn't be the first time someone has bought a used Subaru only to find the shaft, or a part of it, is missing).

Also, the rear axles (from the rear differential to the wheels) could cause the same symptom if one of them has pulled out from the differential or has a broken CV joint.

If everything appears to be functioning, then the AWD transfer clutch could be worn out or damaged (seen this before). In this regard, has the car ever been towed with just the front, or just the rear, wheels raised?

You might be able to verify some things visually such as the propeller shaft; others might require getting the car up on a lift and/or having a mechanic take a look.
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