Got it working with the following code.
Used "ENC1" and Encorder.3.
Also moved the jumper to "Signal ended encoder" on the Mesa 7i77.
Code:
# connect feed overide increments - encoder
net fo-count <= hm2_7i92.0.encoder.03.count
# connect feed overide increments - encoder
setp halui.feed-override.direct-value false
setp halui.feed-override.scale .01
setp halui.feed-override.count-enable true
net fo-count => halui.feed-override.counts
# ---spindle override signals to mesa encoder - enc---
net so-count <= hm2_7i92.0.7i77.0.0.enc1.count
# connect spindle overide increments - enc
setp halui.spindle-override.direct-value false
setp halui.spindle-override.scale .01
setp halui.spindle-override.count-enable true
net so-count => halui.spindle-override.counts
