The output voltage is low for the rotary encoder with high level 5V type. To check the output voltage by oscilloscope, it should be 5V but around 2V. Is there any faulty?

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Please remove the connection with the measurement device such as the counter or PLC.

If it is 5V in that condition, it is not a fault.

The output voltage is divided by the input resistance of the measurement device.
The following chart is for the output resistance, 1 kΩ of rotary encoder and the input resistance, 680 Ω of the counter.

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