The counter works via a magnet on the underside of the gypsy that passes over a small sensor (with 2 or 3 wires) embedded in the base. Each rotation counts as a specific length of chain based on the size. Both the magnet (rusts) and sensor (or wires) fail over time in the salty wet environment. You¡¯ll need to check both and the Quick website should have manuals with diagrams showing exactly where.?
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In the meantime, you can set the handheld unit to ¡°windlass mode¡± (I think...) which disables the counter function and will allow you to raise and lower completely without having to press enter/reset every 4 seconds. (Or you can release the up/down button every 3 seconds to fool the sensor.)
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Worth noting, I replaced both the magnet and sensor and it did not solve my problem... but the new sensor was not new... just one on board that came with the boat...