The push button on the rotary encoder is not properly using a pull-up resistor. It is wired when closed to pull to ground, but the pin on the Uno board is not configured as INPUT_PULLUP.
After examination of the source code associated with the library used to interface with the encoder, it turns out that that pins are being properly configured.
The push button on the rotary encoder is not properly using a pull-up resistor. It is wired when closed to pull to ground, but the pin on the Uno board is not configured as INPUT_PULLUP.