Thanks to those that cautioned possible TIU DCS driver damage. I will apply the liquid electrical tape solution before I send the offending equipment through the switch again.
I've seen other comments on Atlas 7.5 turnouts, but an older generation than mine. It seems Atlas didn't address this problem. Look closely, you can see two bright spots on the second wheel set. Sparking on the diverging center rail. The locomotive was not on the diverging route. The wheels come in contact with the diverging center rail.