Duh. It turns out my LED circuit works correctly after all. The problem I had earlier was due to using a ring of RGBW LEDs for testing. The driver only handles RGB LEDs at present. When I replaced that with a ring of RGB LEDs everything started working correctly. So I guess everything on the board works. The only problem was a reversed connection on the rotary encoder and the inability of my rotary encoder driver to handle the case where pin B was not pin A+1.
Now I need to move on to a completely manual layout where the signals and power are routed more sensibly. I'm in the process of learning KiCad for that.
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