If the DRO is new and you swapped scales to the DRO and the problem followed the scale, then you either have a bad reading head or the head is not aligned to the scale properly, Most makes will error out if the head is grossly mis-aligned.
You could also remove the reading head, usually be sliding off the end of the scale and make sure it is clean also, use alcohol and lint free soft cloth.
Al.
CNC, Mechatronics Integration and Custom Machine Design
“Logic will get you from A to B. Imagination will take you everywhere.”
Albert E.