4 LO will only put the VX in full 50/50 power transfer mode between front and back full time. It will also change the gearing in the transfer case. (the Low part of LO)
When you have open differentials on a vehicle and one wheel loses traction for some reason, no power will be transferred to the other wheel on the axle, therefore giving you no power to the wheel with traction. A locker will "lock in" that differential so theres torque going to both wheels regardless of the position of the other wheel. This is very beneficial while offroad but does not allow the car to maneuver very well when traction is good like on pavement. Thats why its important to have a selectable locker (ARB) so you can turn it off when you don't need it.