[Update]: Here is the output of log when clicking the encoder once in the CW direction.
[00:00:49.962,402] <dbg> zmk: split_central_sensor_notify_func: [SENSOR NOTIFICATION] data 0x2000f6cf length 12
[00:00:49.962,463] <dbg> zmk: peripheral_sensor_event_work_callback: Trigger sensor change for 1
[00:00:49.962,524] <dbg> zmk: zmk_keymap_sensor_event: layer: 2 sensor_index: 1, binding name:
[00:00:49.962,554] <dbg> zmk: zmk_keymap_sensor_event: No behavior assigned to 1 on layer 2
[00:00:49.962,585] <dbg> zmk: zmk_keymap_sensor_event: layer: 1 sensor_index: 1, binding name:
[00:00:49.962,615] <dbg> zmk: zmk_keymap_sensor_event: No behavior assigned to 1 on layer 1
[00:00:49.962,646] <dbg> zmk: zmk_keymap_sensor_event: layer: 0 sensor_index: 1, binding name:
[00:00:49.962,677] <dbg> zmk: zmk_keymap_sensor_event: No behavior assigned to 1 on layer 0
[00:00:49.984,893] <dbg> zmk: split_central_sensor_notify_func: [SENSOR NOTIFICATION] data 0x2000f6cf length 12
[00:00:49.984,954] <dbg> zmk: peripheral_sensor_event_work_callback: Trigger sensor change for 1
[00:00:49.985,015] <dbg> zmk: zmk_keymap_sensor_event: layer: 2 sensor_index: 1, binding name:
[00:00:49.985,046] <dbg> zmk: zmk_keymap_sensor_event: No behavior assigned to 1 on layer 2
[00:00:49.985,076] <dbg> zmk: zmk_keymap_sensor_event: layer: 1 sensor_index: 1, binding name:
[00:00:49.985,107] <dbg> zmk: zmk_keymap_sensor_event: No behavior assigned to 1 on layer 1
[00:00:49.985,168] <dbg> zmk: zmk_keymap_sensor_event: layer: 0 sensor_index: 1, binding name:
[00:00:49.985,168] <dbg> zmk: zmk_keymap_sensor_event: No behavior assigned to 1 on layer 0`