Unable to enable Rotary encoder

[TinkeringB]

Issue:
After flipping the Rotary encoder switch to on, moments later it switches to off again by itself.

Hard and software details:
Freshly installed:
Version rAudio 20251109
Kernel 6.12.57-1-rpi armv7l
Firmware 20251021-1
Hardware Raspberry Pi 2B Rev 1.1
SoC BCM2836 · 916 MiB
CPU Cortex-A7 x 4 @ 900 MHz

Logs:
journalctl shows:

Dec 30 13:12:34 rAudio sudo[19589]:     http : PWD=/srv/http ; USER=root ; COMMAND=/srv/http/bash/settings/data-config.sh rotaryencoder
Dec 30 13:12:34 rAudio sudo[19589]: pam_unix(sudo:session): session opened for user root(uid=0) by (uid=33)
Dec 30 13:12:34 rAudio sudo[19589]: pam_unix(sudo:session): session closed for user root
(..some ipv6 noise..)
Dec 30 13:12:49 rAudio systemd[1]: Started Rotary encoder.
░░ Subject: A start job for unit rotaryencoder.service has finished successfully
░░ Defined-By: systemd
░░ Support: https://lists.freedesktop.org/mailman/listinfo/systemd-devel
░░
░░ A start job for unit rotaryencoder.service has finished successfully.
░░
░░ The job identifier is 1374.
Dec 30 13:12:49 rAudio rotaryencoder.sh[19713]: /srv/http/bash/rotaryencoder.sh: line 8: dtoverlay: command not found
Dec 30 13:12:49 rAudio systemd[1]: Reload requested from client PID 19709 ('systemctl') (unit websocket.service)...
Dec 30 13:12:49 rAudio systemd[1]: Reloading...
Dec 30 13:12:50 rAudio rotaryencoder.sh[19759]: realpath: '/dev/input/by-path/*button*': No such file or directory
Dec 30 13:12:50 rAudio rotaryencoder.sh[19760]: No device specified, trying to scan all of /dev/input/event*
Dec 30 13:12:50 rAudio rotaryencoder.sh[19762]: /srv/http/bash/rotaryencoder.sh: line 26: dtoverlay: command not found
Dec 30 13:12:51 rAudio rotaryencoder.sh[19764]: realpath: '/dev/input/by-path/*rotary*': No such file or directory
Dec 30 13:12:51 rAudio rotaryencoder.sh[19765]: No device specified, trying to scan all of /dev/input/event*
Dec 30 13:12:52 rAudio systemd[1]: Reloading finished in 2632 ms.
Dec 30 13:12:52 rAudio systemd[1]: rotaryencoder.service: Deactivated successfully.
░░ Subject: Unit succeeded
░░ Defined-By: systemd
░░ Support: https://lists.freedesktop.org/mailman/listinfo/systemd-devel
░░
░░ The unit rotaryencoder.service has successfully entered the 'dead' state.

[rern]

Please try: pacman -Sy raspberrypi-utils