This question piqued my curiosity so I decided to check it out. I don't have any 3way switches. I used two standard EPL turnouts to test how the CS3 operates with a LGB 55025 Multi-decoder.
This Multi-decoder was labeled "B" when I added it to the system and has DCC switch decoder addresses 5-8. This happened to be my system's second switch multi-decoder. The following screenshot shows the Multi-decoder's configuration after adding the 3way.
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I added it to address 6 just to see what would happen. The system also automatically assigned the next adjacent address, 7, to the turnout. Thus, two addresses are allocated for the 3way's two EPL drives. Address 7, B.3 in the above shot, is no longer available to be assigned. Addresses 5 and 8 (B.1 and B.4) are unassigned in this example.
The next screenshot shows what you get when the turnout is added to the trackboard and the 3way is selected by touching it. A regular turnout with a single diverging route immediately changes over when its icon on the trackboard is touched. A box opens that allows selecting from the three possible routes when the 3Way is touched.
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The currently selected route is highlighted in blue. Here it is shown as straight through. Touching either the left, center or right turnout icons will operate the two EPL drives as required to physically set the route and the box disappears. Note that on the trackboard the existing route is in color and the non-selected routes are grayed out. The next shot shows the right-hand route selected.
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One more note on the setup. I needed to physically swap which EPL drive was connected to which decoder output, address 6 or address 7 and also reverse the White-Orange leads on one drive to get the physical turnouts to mimic the trackboard setting. You will probably need to do similar fiddling with your decoder - EPL drive connections to get your 3-Way to behave correctly. It works great and completely as expected once the wiring is sorted.
I did not try to see what happens if the last address of a multi-decoder is assigned to the 3-Way or whether the turnout can be assigned to two individual LGB 55524 Switch decoders. Maybe in the future.
Phil S.
Edited to hopefully add more clarity.