Can you hook up wires to a piece of track, and perform a conventional reset of the engine with the Z4000 using one horn and five bell presses?
It maybe locked in neutral if it got scrambled. That is if it got power and lost it over and over in a very short period of time. That can be from dirty track, and or pick-up rollers, or crossing bad track sections like uneven switch frogs, etc.
There maybe wires inside that have come loose or are grounding to the frame.
By running in conventional, you're trying to narrow down where the problem is. If the board lost connection to the tach, etc. If a MTH command board set puts out power to the engine and does not get the reply from the tach it expects, it can shut down. Sometimes that means there's just a wire or tether problem. However sometimes there's a short and continuously applying power could fry the board set.
There's always recommendations of watching the power meter for unusual power draws in that case. You posted that it just sits there do I can only guess that it lost connection to the tether, or is not getting the proper response. That can come from thrown traction tires, binding, etc. If it was a short, something might have fried by now. Many PS3 steam engines (if not all?) have a separate boiler board that handles the tach. If the main board in the tender and the boiler board loose connection, the engine can't run. I am not a tech, and I'm just guessing on many of these statements. I just have experience from working on my MTH engines. I have installed a few board sets and have gained info from what goes wrong.
Anytime there's a problem, it's good to realize what can happen if you just keep powering up a problem engine.