I posted a solution in your photo folder. You can remove it if you do not agree.
As others have said, it shows the loop as open. I can see no advantage in having a closed loop so this solution will not change how the layout operates. The track at that point also has to be gapped, both rails. Just cut with Dremel cut off wheel. Later fill the gap with plastic so they do not creep together.
Some more back ground.
If you read any of the instruction for DCC you will see that bus longer than 30 feet can cause problems. The problem would be spikes in the signal along the bus. These spikes can harm decoders.
If the wires are twisted, the problem will be reduced, since yours are not I am thinking that is the problem.
In layman's terms, the snubbers (R/C Filters) act as sponges and soak up the spikes.
Also if possible, tie each of the two wires in a bus together with wire ties or tape. The closer the pairs are the less likely to cause the spike problem.
As to the hot R/C filter, it may be damaged and I would replace it to eliminate that variable.