Rotary encoder fault

I've recently soldered up a circuit on veroboard which includes a rotary encoder for menu selection on a Nano Every. (The encoder pins are routed directly to D(in) pins on the Nano.)

I'm getting an intermittent problem where the Nano doesn't recognise turning the encoder knob, but if i short the pins of the encoder with just dry fingers, the Nano responds eratically.

I'm wondering whether rotary encoders are prone to faults, or whether any other considerations are worthwhile when designing the boards?

Yes, they are.
HTH

Pullup resistors for the encoder pins (either internal to the processor or external on the board).

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