Ed, unplug the MTH cable from the SER2. If the Lionel TMCC accessories operate normally from the CAB2 without the TIU connected, then the problem lies with the MTH gear.
To further diagnose what is going on, download the LCS WiFi Monitor LE, install it on a notebook, and connect to the Lionel WiFi. You can see all of the commands transmitted on the PDI buss with the software. After you are comfortable watching normal operation commands going to the TMCC accessories, plug the MTH cable into the SER2. See what changes with the TIU connected. You might want to record a test sequence with the CAB2 so you can replay the same commands with and without the TIU connected.