Yes, it’s possible, I did the same line upgrade and was able to make switches. The only thing I notice was that it requires a longer track space to create the switch, which makes sense as it’s for faster trains.
Another thing, sometimes when you delete one of the old track’s section, if it’s electrified, it leaves a tiny electric pole, usually near junctions or old switches that must be deleted as well. Sometimes it’s hard to see if you’re laying tracks zoomed away. You must zoom further close to spot the “nasty” pole.
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