I missed a required additional 180˚ sector at the center, with a 0˚ offset in this simulation. Oops.
Gray code is a variation of binary, with a property of adjacent values only differing by one bit. This makes Gray code more suitable to be used for rotary encoders, as only one switch will have ambiguous values that are a function of such physical devices. This video derived from Nick282K's clip showing the works of an actual encoder.
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