Steam smells like burning wires
Check that you have added the smoke fluid (oil) to the engine and that it has not run dry. The smoke from the engine is generated by a small chamber with a heating element built in. The heating element gets hot as the loco runs and heats the smoke fluid up which in turn creates the steam/smoke. If there is no fluid the heating element can over heat and will smell as you describe. Not sure if your model has a smoke effect on/off switch, if it has switch it off if you do require the smoke effect.
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