Hello!
EDIT: Problem solved, and to conclude, there is no such functionality, the hysteresis was externally induced.
We're using 5744 with eTimer configured in quadrature encoder mode together with a rotary encoder.
I'm curious wether there is any undocumented hysteresis in this function?
When the encoder changes direction, there is a deadband of approximately 32 increments before the counter value is updated.
Inside this deadband, I can move the rotary encoder back and forth and clearly observe the pulses on an o-scope, but it's not reflected in the counter register (nor in the INPUT register).