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Upon double checking on my workbench the results are the same. With properly oriented isolated track on each side, a passing car activates the bell when it hits the isolated track and continues to ring until it passes the isolated track on the other side.
HOWEVER neither the crossing gates nor the lights respond.

I have that grade crossing, unfortunately for your issue, mine works as intended.  Checking the manual, it says even a bulb change has to go back to Lionel.  There is no wiring diagram sheet of any sort available.  Although the parts breakout in the Lionel support section indicates a number of versions were manufactured.  Sorry I couldn’t help.  (I turn off the bell on the short Xmas loop, a little annoying)

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Thanks. Only my bell is working. I could get along w/o lights. Doesn’t sound like an authorized Lionel repairman could do much that would cost less than a replacement and I’d rather spend that much or less on something else. My new layout is tubular.  With Menards’s trans ton pieces this would look fine - if it worked

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