It actually does appear that something is amiss in the engine, it drops power immediately when it loses the power momentarily. Even if it has that gap, it should not have lost sound. Since the lights come back on very quickly, it has power back and should have continued on it's way like the other engines. The battery should have kept the PS/2 electronics running and allowed the engine to continue on.
First step is to check the battery and charging circuit for that locomotive.
If you put it on a straight track section and interrupt power momentarily, (less than a second), the sounds should continue and it should act like nothing happened. Again, if you have it on a straight section of track running slowly forward and interrupt the power briefly, it should momentarily stop and then just pick up and continue running. If either of these tests fail, you have a battery/charging circuit problem.