Pretty sure it's working as designed. Are you sure this one was automatic at some point in the past?
The MTH one you have to turn the knob for the light to come on. The Lionel (AF) one there is a micro switch at the top and they go on automatically when he arrives.
At least that was how mine worked when I had it. I sold my MTH one because I also preferred the automatic lighting as he arrived at the top, so I kept the Lionel (AF) one.
-Dave