Thanks for checking in, Peteski. First thing I did was scan through your wonderful dissection of this loo, but I didn't see anyone mention an issue like this.
I'm using an old Digitrax Zephyr system. The warning shows up when the engine is on the main line. I haven't had it on a programming track. (Like I said, I tried another analog engine and had no problems. Only an issue when the SW1 was on the track.)
I bought the loco (supposedly) new. I've no reason to believe it's not, but it was purchased on eBay from a hobbyshop. I haven't lifted the hood, but I can't imagine there's a decoder in there. Hopefully there's an easy fix; if not, the seller allows returns, and has others of the same road name up for sale. I'd be happy with an exchange, if that becomes necessary.
No DC throttle handy, but I'll try the 9V test when I can, probably Sunday. And no multimeter, but I might as well pick one up.
Jim