dlloyd:
What happens if PEC 1 are in position 3 and you turn PEC 4 to position 2?
From the OP's replies # 23, 41, 67 he indicates he will only rotate one of them at a time. I guess this implies he'll set all unused encoders to position 0.
All other combinations would be invalid ... unless decoded by calculating the new R1, R2, Vout, and code. Notice that several of the results are already getting close with only 14 count difference. A 12-bit or more ADC could extend whatever the practical limit of encoders is.
For example, I turn #2 encoder to a position, then turn # 6 to a position, then #3 to a position without disturb together. Is that possible ?