Sounds like deselect as stated, so the best thing is to get a new chip from MTH. I had to do this with one of my locomotives. It showed up quick and I was back in action. If you try to use the chip from a locomotive of the same era, like the one from the gutted one, you'll have the same issue as that chip still looks for the deselect code. The new chips from MTH do not follow the deselect code and thus will work.
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