I think you mean conductive grease rather than dielectric grease. I use conductive grease when assembling Gilbert track after cleaning the pins. A very small amount is best, it makes a difference. I have not used it on the axles of the lighted cars. Before putting the cars on the track for the first time after they have been off the layout I clean the axle ends with a spray of electrical contact cleaner. Then a drop of oil for low rolling resistance. I clean the wheels, both the pickup wheels and the plastic wheels. If the plastic wheels are not clean then they just re deposit dirt back on the track. I lay paper towels over several sections of track, soak them with contact cleaner and run the cars back and forth over them until the wheels are clean. This process is the quickest I have found when doing a large number of cars. The track must be completely clean as well.
I have not put the grease on the axle ends because I do not feel that is the source of the flicker. I have almost no flicker after doing the steps above. I also have less flicker on the layout with the SHS solid rail track than on the layout with the Gilbert track. This may be because the smaller, smoother SHS rail head makes better contact with the wheels. You could try using a small amount of conductive grease on the axle ends and see if it helps. It will not hurt anything. I use GB Ox-Gard, bought some at Home Depot. Its primary use is in joining copper to aluminum conductors in power circuits.