Oh yes.
The ones that I've known to fail are on on the fairly large layouts of mates who run mostly U.S. outline stuff. I strongly suspect they've exceeded the switches' current rating.
At some time LGB re-engineered these, the later ones are smaller and contain a pair of microswitches rated at 2A 30V DC. This is not nearly enough IMHO to handle traction current for a reasonable length train with lit coaches or cope with the odd derailment. The 125V AC rating is 3A and I can't remember any failures on switches used with point motors.
However LGB's design is, IMHO, convenient, fits easily and has a positive mechanical action so I recommend the following tried and tested remedy.
Purchase a few of each RS components code 706-4206 and 706-4212 switches. These are direct replacements with one of each inside each LGB switch. You might as well get a few as RS will probably have a minimum order charge, but still cheaper than one LGB switch. Then only use the repaired switches on their own as part of a point or similar control system. For traction current use them to switch the coils of automotive or similar cheap, easily available, relays with a switching capacity equal or greater than your track power supply.
I've explored the possibility of using other microswitches but I've not found any of an adequate rating, most are far less than the ones used.
