I checked with IM, here is their response. So bottomline, the beacon was not meant to work, nevertheless, a superlative model by all accounts.
"The beacon on the Milwaukee Road unit does not light up. The LED is on the front of the decoder so is too far to the rear of the cab/hood to effectively light up the beacon. The decoder does have the capability but one would need to run an LED to the beacon independently of the existing LED's."