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They are hit and miss. All the newer Katos work. LifeLike doesn't. Some Atlas.
ME Code 40 isn't friendly. Atlas engines may or may not clear the spike heads, Atlas plastic wheels will, the metal ones are a crap-shoot. Most Life-Likes won't clear. MT low-profile wheels work fine as do Fox Valley and Northwest Shortlines low profiles. Making your own turnouts will be a challenge, to make them reliable. All older Con-Cor engines will hit the spikes, don't personally know about the 2-10-2. You can pull-in the gauge on this stuff by breathing on it too heavy, so glue, not spike it down. Looks great, is usually a PITA to operate on. Best of luck with it...you may need it. : ???
I just use it for spurs and sidings where it won't need a turnout, this may be what Eric is doing to.