As BW Electronics I designed and manufactured a range of draw wire sensors for use on machine tools, I sold thousands all around the world. No one has ever complained to me about inconsistency.
The Oetec DRO used plastic linear encoder strips as used in printers, hence length limitation.
My sensors used a home made encoder, using 120 slots over 30mm diameter with a times 96 interpolation to give about 6 microns resolution. Every sensor was calibrated to ensure accuracy was better +/-2 thou.
The killer with rotary is the drum, it has to be concentric and parallel with suitable bearings, good luck!
As a matter of interest my first DRO was sold in 1992, two axis system for £390. My last two axis system was sold about 2022, for £390. So if anyone wants to complain about inflation then I am not the right person to complain to.
I will still repair my sensors, even after all these years.