Arcing will occur when 2 metal contacts are separated while current flows between them. No current - no arcing. The more current flows, the more intense the arc will be. So incandescent lights consume more current than LEDs, so the pitting could be more severe. But if the discolored/pitted areas are not at the contact point, the discoloration was caused by something else. Guaranteed. Arc is basically plasma: superheated gas (the ambient air) which is created by electric current flowing through the gap between conductors). The point of contact of metal with the plasma can become pitted.
In my experience with Kato car lighting, 99% of the flicker is due to the intermittent connect between the rail and wheel tread, and possibly at the contact area of the axle point to the bearing cup. Cleaning rails, wheel treads, and the axle points/cups cures most flicker issues.
The points of contact between the truck's protracting contact and the flat metal strip can also cause flicker (which is intermittent contact), but to a lesser degree. Yes, those also need to be clean. I actually polish those points of contact.