Also my Wi-Fi box will blink until a device attached to the Wi-Fi box. Then blink quickly to show activity. I am joined to my Home Network so the LED indicators may be different for the "Access Point" mode. i went to look for my manual and it is not where I have all my manuals. It would appear i have some looking to do.
Yes, when working correctly, LED blinks as you stated Showing connection made to a device, iPad in my case.
WIFI is not showing up in my iPad ‘settings/wifi’ to select it to make a connection. Initial thought was WI-FI signal may be interfered by another signal(have MTH WI-FI, which is working, Base, transformer etc plugged into same power strip). Tried to eliminate signal inference, if one, by disconnecting MTH WF, IRV, & moved around where transformer, base etc were plugged into power strip. Nothing helped. That’s when I tried to reset WI-FI box per manual, but appears it would not reset, LEDS would not quit blinking until I powered it down. Did reset per Lionel manual. Assume manual procedures correct.