I'm only going to repeat this one more time. If you re-enter the Macro 99.02 to set all default values, then you set 99.04 to Vector Speed, and you have a standard drive, and you get an Encoder Fault, THE DRIVE IS DEFECTIVE!
If you select Vector Torque in 9904, then you will get an Encoder Fault. The Instruction Manual explains that an encoder is required for speed control in Torque Control mode