Any decoder should work and not care if it's in two rail or three rail if it's wired correctly. A relay is just something to help with high current. It is not strange at all. They can fail. I have not had one fail myself.
Some three rail installers struggle with two rail if they've never done it. It is simple but as posted, the wheels must be isolated electrically and that includes from the frame and any other grounding, unless desired.
I have seen where simple un-intentional or un-wanted grounding happens even through the couplers. You must think it thru!
It doesn't matter if it's DCS or DCC!! They work the same.