Bloom Branches problem

Position 2 of the Branches encoder seems not to add a 2nd Branch to the sequence.

To add Branches to your sequence, you turn the Branches encoder CW, and the number of Branches currently selected is indicated in the vertical column of LEDs.

As you start to turn the encoder CW from fully CCW, the 1st LED is lit to indicate that you are using just one Branch.

Turning the encoder further CW, the 2nd LED lights up. This should mean that you have added a 2nd Branch. However, the sequence is still only playing a single Branch.

As you turn the encoder even further CW, the 3rd LED lights, and the sequence plays with 3 Branches.

What’s happening with Branch 2?

…or am I missing something?