Took locomotive to the train shop, they looked at it and tested. One of the screws for the rollers was the incorrect one and was causing a short. We solved that issue, but there's also arching on the right wheels of the loco. They believe there may be a missing spacer or insulator. I'm also missing some screws to hold down the metal plate. And now I know I'm missing a screw for the roller since one was incorrect. I ordered the missing screws from Lionel.
I decided to take the loco home and try to find what's causing the arching on the right side of the loco. Below photos don't show anything obvious to me.