Hey @Deno Vikram ! Welcome to Carnity !
The difference between 4H and 4Hlc is simple:
- In 4H the power ratio between front and back will be around 30/70, and the viscous coupling in your transfer case will make this variable based on the torque needed. 4H is the most common used setting for offroading with your Pajero.
- In 4Hlc the power ratio becomes 50/50 and instead of the viscous coupling this becomes a fixed ratio.
You mentioned you have completed some mountain trails. Be aware in this summer this will mean your engine will run very hot, because the main issue is the fact you are driving really slowly so there is hardly any ram-air effect pushing fresh air through the radiator, and the fan itself has to do all the work.
On steep trails, definitely move to using 4L (low gearing) which will allow you to get good torque and steady climbing ability.
You mention your warning sign lit up: was it the engine high temperature or transmission high temperature ? While doing steep climbs the automatic gearbox will be hunting a lot (up and downshifting) which results in overheating transmission. This can be avoided by using your tiptronic (manually selecting 1st or 2nd gear). That way the transmission will stay in the same gear while you are climbing.
Some info below: