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Yes, very wrong. The left (volume) encoder is definitely not working correctly. A bad encoder is one possibility, but a bad solder connection is more likely. Now you have to trace the circuit from the encoder lines back to the main PCB to find out where it is not connecting. Highest probability is right where the encoder wires are soldered to the control sub assembly PCB. Other possibilities are a bad solder connection of the male and female pin connectors between the two boards. If you find no discontinuity, then a bad encoder is possible.

Good luck tracing it! Hopefully it is something simple.