This one drove me nuts for a long time
Found the the lowering flow control faulty ,it sits behind the main
Lift hose fitting in the aluminum valve body.
Look at the flow direction arrow when removing.
When the flow control goes bad the unit lowers slower than should
And the encoder doesnt count properly.
To check quick,if you have another picker handy
Put them side by side and lower them at same time
Both should be close to equil,the slower one is always the one with a faulty flow control.

do you have access to the dash display setup menu? If not you will probably need a dealer technician to reset the encoder.

I have one with the same code, no travel or lift. Encoder and "curly" cable have been replaced. Overmast cables ohm ok and prox lights yellow when turned on. Any help would be greatly appreciated.

the error code can be caused by several different things, the encoder, wiring, prox switch, or unit setup. are you familiar with entering the setup menu on these units? if so, check to see if the unit is set for largebox , also, try raising platform past 24" prox sensor and lowering back down.