The switches usually have an anti-derailment feature that makes the switch change to allow a train through a switch that is set in the wrong direction. It does that with a short section of isolated track from the points area to the two different directional tracks. The outside rail gets shorted across to the isolated track which activates the switch to change. If the right side of the engine's wheels are not electrically connected to the left side wheels then the connection for the anti-derailment feature might not work, the isolated tract section for signals might not work or the engine may stall in the switch when traveling slow.
The 2/3 switch is suppose to connect the wheels together in a Premier engine when in the "3" state. could it be you 2/3 switch is bad like mine was???
LDBennett
We saw this problem with the PS-3 Premier VO-1000 diesels with 3-2 wheels. The 3 rail/2 rail switch was not wired properly, and in 3 rail mode it didn't connect the wheels and both sides together.
Stuart