1) Copper isn't the only thing than can be used for electrical transmission, merely the most efficient/cost effective/safest. Enough for lighting with a bare minimum amount of copper
within the factory (anyone outside can deal with lights-out protocols) and converting everything else to direct drive is possible, especially with the hp rating of the engines in question.
2) A quick check of the types of engines available during the timeframe shows them to be near or above MW class in energy production, or a minimum of about
1100 hp. And do remember I specified
early war for availability, tools to make tools and all.
3) I am well aware that the Von Neuman process is not magic, this was said metaphorically/sarcastically, but its defining characteristic is self-replication, in whole or in part. While said engine would
not be able to do that directly, it can directly power the equipment necessary.
4) Engineering upgrades come in a whole rainbow of flavors, especially when space is not as limited as it would be to be used as a locomotive: converting to diesel power (which was in fact done on several models after the war), making multiple firing chambers that can be swapped out rapidly to remove ash with minimal downtime, changing the boilers to more effectively use the now available space, changing the boiler process to recycle more of the water than a locomotive would normally, rearranging the steam pistons in either number, direction, or size, engineering changes to make direct drive more efficient with available resources, etc.
The main things preventing this is the inability to think outside the box regarding the problem, commanders who want to prioritize their stuff
now to fight their portion of the war, and a tyrant that was going stage 3 syphilis crazy demanding the impossible with the resources available/misusing said resources.