I'm not an expert on DCS and in particular on the WiFi app (which I do not use), but the "inactive" description and the fact that the engine appears to have started up in conventional when you first applied power is an issue I have had. Also various lighting features (like the beacon on my DDA40X) not operating sometimes. I wonder if it would be a good idea to try using the remote first without the WiFi?
It should not make any difference that you are using a small section of track as long as it is wired up to the TIU properly. I assume you went through the routine of adding the engine and the "READ TRACK" function - otherwise I don't know how it would be listed as inactive. Try READ TRACK again and see if it shows in the display.
I see that you do have (or had) firebox glow. I don't know whether there is any independent control of this through the softkeys. It's easy to accidentally turn things such as sound effects and lighting on and off by hitting the wrong button. Basically I had to check each softkey command for each of my DCS engines in order to be clear what I had turned on and off - it's far from an intuitive system - but a feature or factory reset is an alternative for checking the status of a feature. For that you will need to have the engine recognized as active by the DCS system.
Someone more expert may weigh in but the above is what I would try.
