Wiring schematic

Well here is your first problem. You are taking devices that need both states triggered (AKA 3 wire devices with separate up/down wires) and then wanting to use a single state sensing device like insulated rail.

manual links:

https://mthtrains.com/sites/de...ction/30as13902i.pdf

https://mthtrains.com/sites/de...ction/30as16562i.pdf

Insulated rail is normally open circuit, and then closed circuit by the wheels.

Ultimately, because at least for the lights you need to hold the position or status- insulated rail by itself will not work.

You need a relay or other device in the middle- to take something like an insulated rail and then get a constant output of 2 different states using the relay contacts.

This isn't all that different from a previous topic https://ogrforum.com/topic/crossing-signal

Something like and ITAD or other device with a built in relay https://hennings-trains.shopli...al-driver-rev-2.html

Again, at the most fundamental level, you have 2each 3 wire devices and most importantly, those devices want/need one of the 2 wires triggered for BOTH conditional states, but an insulated rail section is only possible to trigger a momentary single state. You need some form of device in the middle to convert the insulated rail to 2 edit- bi-stable states.

Again, you can DIY it with a relay and insulated rail, or you can buy an off the self device like @gunrunnerjohn's insulated-track-signal-driver-rev-2, or use one of the many infrared detectors that uses a relay to achieve the requirements.

Because your device(s) needs constant trigger (bi-stable states)- 2 insulated rail sections are not going to cut it for these specific accessories.

Both of these products have two states of operation and require either a SPDT relay or some type of mechanical SPDT switch, like the 153C Contactor.  The switch/relay NC (normally closed) terminal will provide power for the Green signal (when no train has been present for a set amount of time).  The switch/relay NO (normally open) terminal will provide power to the Red signal when a train is present to activate the device.

Most people find the 153C Contactor to be finicky and unpredictable.  A relay can however be activated with an insulated rail.  The insulated rail connections can be used to power a relay coil, which when energized flips it's internal connections between it's Common Terminal from the NC to the NO terminal.  If you decide to go this route, a wiring diagram can be provided.  An AC relay is a bit simpler to wire than a DC relay.

Alternatively, there are off- the shelf options that use Infra-red sensing of train presence to activate their built-in relays.  The Z-Stuff DZ-1075 is one such highly recommended option.

EDIT: I see Vernon was working on a reply at the same time as me.