Rotary encoder not working with Iq Audio DAC+ (volume)

[naufra-g]

Hi there,
Many thanks in advance for the assistance and for making this possible.

I'm quite a noob, so I might be missing something very basic, but truth to be told, I'm stuck with this for quite some time. Looks like the final boss of the project...

Software/Hardware
Runnign version 2
Raspberry pi 3 A+
Raspberry Pi DAC+
https://www.raspberrypi.com/products/dac-plus/
Rotary Encoder EC11
https://www.dfrobot.com/product-1611.html
NFCPN532

PROBLEM
Everything works fine, but rotary encoder (EC11) does not work for volume change when DAC enabled.
The volume is configured to GPIO 23 and GPIO 24, as indicates the data from the DAC.
When DAC disabled, and sound running via raspberry built in, encoder works perfectly.

Have been trying sollutions, but nothing worked so far.
Hope somebody can help, I'm surprised I did not manage to find a sollution so all elements I'm playing with are quite "popular"

Best regards!