I'm not saying the CW80 is a perfect transformer, far, far, far, from it.
That said, it has some pretty basic known failure modes- either stuck full on output- from a failed TRIAC that just conducts full power with no control, or no power of any kind. I'm not saying it's impossible for other failures, but implying the current sensing circuit for overload protection somehow went wonky- I'm not buying it.
Again, the testing right here in the topic basically proved the transformer was STILL properly varying power, and just that when the output increased- so did the amperage draw- to the point we reached overload.
Where this went wrong, is 2 people read the same manual, and get insanely different ideas of what that means- and you said this: "The CW manual says the blinking lamp indicates the transformer is unable to produce the power requested."
Again, clearly, in the first post, you took that to imply the transformer was faulty and could not supply the power. The "correct" answer is- the transformer is trying to supply the commanded power, and your load began to pass such current that it hit the internal limit, the transformer safety mechanisms and overload sensing is trying to warn you "Hey dude, you are messing up" and instead of seeing that and thinking- hey, I should probably look at the load and wiring- instead you made a post here asking how to fix your transformer.
Again, the reason for me pointing this out- I perceived the path you were heading down, and your own explanation- you were putting yourself and your wiring at risk. I probably could have done a better job on tone and better explaining, but it was around midnight, so I wasn't at my best. Again sorry for snapping and the tone, but I perceived the path you were on was dangerous, you were taking a warning sign completely wrong, and so I was trying to convey a level of urgency.
I cannot stress this enough- the green flashing is a warning indicator- as was the cut of power when the warning indicator is allowed to continue operating in overload for longer than a few seconds. It's not an indicator the transformer is failing, it's an indicator you are overloading the circuit.
Suppose you follow the advice and install a new, or possibly a larger transformer to power this circuit. If it is a wiring fault- the increased power available and higher overload point could lead to a wire getting hot enough to melt or cause a fire.