Try running a signal strength test with the MTH engine on that siding, but w/o the Lionel on the track. Then repeat with the Lionel engine also on the track. If you have a major DCS signal degradation, the Lionel engine is the problem. Certain TMCC equipped engines are known to do this. The fix is to add a 22yf choke to the TMCC engine. It goes between the rollers and the TMCC board.
Chris
LVHR