The AWS warning was acknowledged for the single yellow at SN43 signal, which was after the AWS warning for the TSR, which was where the chain of events started. As the AWS warning at SN43 was acknowledged, it IS PLAINLY OBVIOUS THE AWS WAS NOT ISOLATED.
The report does not actually state "The AWS was isolated" , but if you read the report properly and actually understand it, it's obvious it wasn't.
Based on my experience of operating steam locomotives, yes I think I know what was going on at the time, which could explain the initial action taken by the crew. I could be very wrong. Thats my opinion, I'm sure others have an opinion what happened as well, but I think this incident is not as clear cut as some think. We shall see.