Hello, I have the same problem, exactly the same with CSMIO Ip-A. I already wrote to them and had no answer.
In my experience, in all other CNCs, when we do not have the encoder reference signal (Io and / Io), they also stop after positioning the axes to start the thread. If we do not have the other encoder signals, we have a feedback error, as we do not have the rotation within the limits, etc. But with the fault of reference signals, nothing is reported. In reality, only the encoder reference signal the CNC needs to make the thread.
With that I left to see the reference signal and noticed that.
1. I was using an encoder with 5000 impulse ie x 4 = 20000 pulses.
2. On the CSMIO ENC leds, I didn't see the reference signal, (of course it is very short). But in reality the positive sign did not exist. So I inverted with the negative sign and changed the parameter of the plugin, saying that it was active at zero. No result either.
My bet now is: I will change the encoder for one with 500 pulses, that is 2000 pulses, with that the width of the reference pulse will be bigger. That's my bet now.
I will make this change until 7/4.
Otherwise, I hope as you will be a help, and a solution for this, because I bought this equipment to be able to work, without it I can say that CSMIO is not being very attentive to us.
Good luck, and if successful, I'll let you know.