solved.
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I had the same problem but it was under warranty. Hope yours is as well. Two bucks is too much for an under warranty train set much less 22. Are there Lionel service stations nearby?
Do you have a local hobby shop? Maybe you could take the loco by there and they could use one of their remotes to check whether it will receive a signal when put on a powered track. That would help you narrow down that the problem is . . .
Send it right to Lionel. Other option would be if you have a good (certified) Lionel service station close to your location.
I just had that issue after the grandys had a tug of war and the remote hit the floor hard.
Watch the red indicator lamp over the dial. Solid at stop and blinking when signaling.
Here was my solution. The springs for the negative side of the batter needed to be bent to center on the battery. Then I took a small hobby screwdriver and pried gently on all the battery terminals to improve the fit of the batteries.
problem solved. These were Duracell batteries.