linear motion detection with sub milimetric precision

After searching a lot on this Forum, I was unable to find any good method to track the linear motion with Potentiometer/Encoder that has a sub milimetric precision (0.1 or 0.2 mm).

My idea is to track motion that is not larger than 1 cm. Any ideas?

AS5304 and AS5306 chips plus their recommened magnetic strips are one way. Or tapping into
the serial output of a DRO scale.

Perhaps overkill for 1 cm movement, small digital calipers with serial output?

Adding a linkage to a rotary encoder and doing the kinematics in software?