Actually, you're trying to make it easier than it is. The encoder wires don't switch the axis. I don't know how to wire the rotary switch, but I think you can do it that way. The downside is you need 1 input pin for each axis, and I think you might need some
VB code for that to work. I was assuming you wanted to use a pushbutton to toggle between the different axis. This will only use 1 input. Alt-A toggles MPG 1 between axis now. So, you go to Ports and Pins, Inputs, and scroll down to OEM Triggers. Set up the pin you want to use (just 1). Then, under hotkey, on the right, hold down Alt and type A (Alt-A). You wire a pushbutton to that input, (and the other side to ground) and pushing the button will toggle between axis.
I probably have you more confused now, right?