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There are a couple of things I can think of.

Firstly, the very slow bit.

The Lenz silvers (and golds), have a 'shunting mode' , which restricts the speed , its activated from Function 3, so first job would be to make sure F3 isnt turned on.

After that, the random lights etc would suggest perhaps a loose connection somewhere in the decoder wiring (if its hard wired rather than a socket) , or in th eloco wiring if its a socket installation.

To verify if the chip itself is at fault, the best way would be to reset it to factory defaults, and see if that changes anything in the running.

For Lenz, simply set CV 8 to 33, this sets everything (including the address) back to defaults.
 
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