I would also test this engine with the smoke off. If it runs better, it may help point out the issue.
I have seen the power paths start to fail when they're weak. I'd check for continuity between the wheels. Sometimes the wiring doesn't connect them properly. I have had to add wipers to get better power pick-up on my MTH 2 rail steam. Some of them, need it.
I found my Dreyfus Hudson only got power on one side of the engine's wheels. It worked good for maybe 2 years and started acting up. I did add bigger 2 rail #7 switches without powered frogs and that seemed to make matters worse for some engines like this one.
When I wire up my 2 rail steam conversions, I make sure there's power on both sides of the tender and the engine. The old models used to use the engine for one path and the tender for the other. That doesn't work if the engine rocks over switches or trackwork. When the smoke is on, the engine will actually damage itself. The power paths get pitted or loose pick-up over time. Having more points smooths out the running and helps prevent this from happening.
MTH steamers are known good smokers. So why MTH would skimp on the power paths is something that continually has bothered me. Owners usually run with smoke on and these engines need good clean constant power.
Most 2 rail people that I've read about, don't use smoke. I do. The constant battle of fixing these toys, points out their weaknesses to me.
The newest MTH 2 rail Big Boy I got, is the most power hungry engine I own. Even more than my MTH G one gauge Triplex. I worry that it will need mods sooner than it should. I can't bring myself to open it up yet.