During the 2004-2005 time frame, I bought a number of BLI Paragon steam locomotives, most of which I have now sold to trim my steam roster.
However, I still have two of them, a 2-10-4 and a 4-8-4. The relevant instructions differ a bit, so I can summarize both sets of instructions for resets. Incidentally, both boxes have a magnetic wand, for what that is worth.
In the 2-10-4 instructions, the reference to reset is as follows: A misbehaving engine can be reset by toggling the switch to the RESET Position as shown above and cycling the power to the locomotive. The sound system will say “Reset”. This indicates that the electronics are back to factory settings. Toggle the switch back to the Standard Position and operate as normal.
There is no mention of the wand or reed switch. When the instructions say to “toggle”, the switch is actually a slide bar.
In the 4-8-4 instructions, there is a reference to the Quantum Reset Jumper to return the locomotive to factory default. The instructions read: Some newly released products may utilize a reset switch instead of a jumper. See separate instructions.
The instructions then continue: Turn off power. Remove the jumper by pulling up. Reapply power, the whistle will respond with three toots. Turn power off and reinstall the jumper. The decoder is now reset to factory default.
The separate instructions read as follows: To reset the electronics to default settings, off track, toggle the switch to the left, place on track and listen for 3 whistle toots. Toggle switch back to the right. The decoder is now set to factory default.
From all of this, my guess is that the OP is correct. There is probably no reed switch to wave the wand over. There may or may not be a jumper. I do recall resetting to default through the use of the jumper on some of my BLI steamers, so the jumper is there on some BLI steam locos.
Rich