As you noted, the picture is not visible.
Is the PM42 a solid state device or a relay device? That can make a difference if you're testing with a meter when the device is off.
What turnouts are you using? The fact that the Kato passenger train works fine tells me the wiring is OK. Is this HO or N gauge? What model is the BLI engine?
It takes an iron man to play with a toy iron horse.
Here is a diagram of my reversing zone, it’s wiring and the results of continuity testing across the insulating gaps. I was kind of surprised there was any continuity? I assumed there would be none since it’s supposed to be electrically isolated? 2 of the 4 entrances/exits of the red reversing district had continuity in both rails and 2 had only one rail with continuity. These results are marked in blue pen with the word TONE for continuity or NO TONE for no continuity. The results in blue pen occur when the reversing section on the PM42 is not tripped (the red light in zone #4 is off)
The results of the continuity test marked in red pen are the results when the reversing section IS tripped and the red light for zone 4 is on.
The blue circle is where I am having difficulty. I have no problem travelling through here in either direction when zone 4 is NOT tripped but is tripped by passing over this isolation gap. So with the PM42 zone 4 red light off, I can travel in either direction through here with no issues.
When zone 4 is ALREADY tripped (red light is on), I can travel through here from right to left with no issues BUT if I go through from left to right, the locomotive hesitates, then restarts on its own. I run the BLI locomotive muted through here and this hesitation causes the sound to momentarily unmute. The PM42 zone 4 light then switches off and everything goes along fine. REALLY has me stumped.
I have followed all of the advise above. I can provide another diagram with feeder wire locations if required.
Again my KATO passenger train flies through the exact same pattern with no issues.I’ll include a picture showing the right side of the layout for context.
Appreciate all the time and assistance
Ok can't figure out how to insert the photo from my iPhone