Using the IOC logic above, along with Bourns debounce circuit (10K/0.01uF) followed by a 74HC14, these are the signal speeds I was able to get using an ordinary pushbutton and EC11-type rotary encoder:

Name:  Switch VS encoder.png
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Switch:
33.9msec ON
146.2msec ON to ON

Encoder:
2.13msec ON
3.01msec ON to ON


To keep things in perspective, I added a LED toggle in MainLoop.

Heartbeat:
2.12usec ON
4.75usec ON to ON