Bob,
I'm working on doing the exact same thing as you, on a K-Line caboose, removing the old light board with it's seven incandescent bulbs, and upgrading to LED's, using Henning's Trains LED driver developed by Gunrunnerjohn.
The bulbs used for the K-Line marker lights are also 2mm wide. I too looked for a comparable size dome-top round LED. There are 1.8mm size versions, where the top is 1.8mm in diameter, they have a rectangle base that is generally 2.4mm x 3.4mm, too big to fit into the market light hole without some kind of filing modifications to the LED. So I wondered if one of the chip LED's I have from Evan Designs would fit and light the 3-sided marker light OK. These chips are 3.2mm long by 1.6mm wide, and when you bend the wires a bit, makes it the same profile as the 2mm grain of wheat bulb - see below.
So I tried it, to see if it would fit, and then what would the lighting look like. It slides right in, no problem with no mods.
Now I powered it to see how well this one-sided chip LED would light the 3-lens market light. Not too bad in my opinion.
Depending on how this one direction chip LED is inserted / positioned on the marker light, the emitted light can be directed more towards the rear-facing marker lens, or the front-facing marker lens. In my trial, the front-facing lens is a bit dimmer than the yellow side lens and rear red lens. But again, not too bad.
Pushing further, I want to try something else. What I'm going to do is try another Evan Designs LED I saw on their site, the "Full brightness all around Double LED". This item is "2 LEDs, soldered close together, then folded them over to put the two LEDs back to back" to give a 360 degree glow. Image below from Evan Designs' site.
There is a Pico size, and a smaller Nano size. Doing some calcs I think the Nano size will fit into the market light holes with no problem. So I ordered some Nano double LEDs and am waiting for their delivery to try them out. I'll follow up on this thread once I get them.
Tom