Have you performed the zero calibration? Page 14 of the manual.
https://www.lionelsupport.com/...ents/72-2982-250.pdf
”Electronic reversing units will not change direction properly unless the track voltage drops to zero volts. If the ZW Controller’s track voltage does not drop to zero when the handle is at zero, the ZW Controller must be re-calibrated. All four channels can be calibrated by moving each handle to zero, and holding the program button in while the power is turned on. The red light will flash five times to indicate calibration is complete. This must be done with the Command Base disconnected. Calibration is done at the factory and should not be required with normal use.”
