DC motor with encoder without encoder pulses

Hi all, 

I am trying to simulate a motor controller with an Arduino Uno and a DC motor with encoder and when I run the simulation, I see the motor showing rpm's but the shaft does not rotate as I have seen in other simulations. After connecting an oscilloscope to the A or B signal pins, I get no pulses from those pins. Does anyone knows why is this happening?

Thank you very much for your help!  


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