Murphy, I previously gave you a bum steer, I thought that the C wires were the power supply, I am used to seeing Z designated as the marker pulse, Having said that your diagram does not show encoder signal common? This is what I meant when I mentioned that some simulator ports have a common and a +5v, in this application the +5v would not be connected.
Your resolver is completely separate from the encoder signals, as the resolver only has a sine/cosine signal and is very low resolution, so apart from being used for motor commutation, it is electronically multiplied and conditioned for Differential line driver output for the encoder simulation plus marker.
Al
CNC, Mechatronics Integration and Custom Machine Design
“Logic will get you from A to B. Imagination will take you everywhere.”
Albert E.