Is this a simple fix? . I would hate to do this for a simple fix.
Sadly, I have the exact same engine and so know it very well. No, there are things you can try but in general a coupler is how a coupler is.
It's a mechanical thing. The diecast knuckle has a ramp and that pushes on a locking pin inside the coupler coil. The idea is, the coil can pull back on the pin and that releases the coupler knuckle to swing out. You latch the coupler when the little ramp molded into the knuckle fights the pin and spring and pushes them over the latch. Another factor is the shape of the knuckle compared to your rolling stock you are trying to couple to. They may not be pushing or fit well and thus it takes a lot of force. Again, the coupler knuckle has to close to a point where the latch can latch. That why wiggling and other force you apply manually makes it work but not just backing into a coupler it does not latch.
So, based on that, 99% sure if you sent it to Lionel, unless the coupler is truly bad, they might or might not replace it with just another identical coupler. Because this is mechanical fit and mating to your rolling stock, the new coupler would be just as likely to not work well either.
Basically, it's file the coupler to shape it to match and smooth out any casting flash. Lube it either with extra light oil or I've seen others say dry lube like graphite?
I know not the answer you wanted to hear, but again, just being up front and honest as I can knowing what is involved and what the process of an RMA might result in no actual change or fix.