Well, better but not perfect I suspect.

The HC14 inputs are at High (~5V) level when not triggerd by the switch/encoder.

When the switch is at ground, the HC14 sees the voltage divider of two 10K resistors, so the voltage is at 2.5Volts.

According to the datasheet, this will lead to not clearly defined state of low or high. Will depend on the HC14 type, brand and temperature.

I would strongly recommend to increase the 10K pull up to 100K.

Ioannis