Here's an update. Brought the WIFI and TIU units home from layout 2 to layout 1. Hooked up the layout 2 WIFI and TIU to layout 1 where everything worked fine before. Seemed to have similar problems of no connectivity. It was late at night so I decided to start fresh the next day. Everything seemed to work much better but probably not perfectly. I was careful to let the WIFI unit have time to send out a signal ( blue light ), turn the tracks on with the handheld, make sure the iPhones 6 and 7 were connected to the MTH WIFI, and then brought up the WIFI app on the phone. The system was at least functional. I had to hit the refresh button to put an engine into the active list more frequently than I remembered doing before. I had to delete and then add back in the two engines I was working with and after all that it was working pretty well.
Maybe layout 2 has some interference in the house. Seems it would help if I can upgrade the WIFI to ver 1.1. I'll be curious to see if things run better when I get back to layout 2. Not sure I did anything differently except make sure the system was all booted up before bringing up the WIFI app on the phone.
Thanks again for everyone's continued help.
Ed