iPower Motor and SPI Wiring

I followed exactly the same procedure defined by Owen to find what color matches what pin.
I’m connecting this encoder to ESP32/ESP8266 boards and It doesn’t work.If I connect power to either 3.3V or Vusb (~5V), the ESP doesn’t even start. I even burned ESP32 trying it multiple times. I experienced it before only when I messed with polarity of the sensor. But here the polarity seems right to me.
So there must be something I don’t understand.

  1. The main question - will it work at all? ESP8266/ESP32 have 3.3V digital logic, the green power pin is 5V, but the AS5048A encoder seems to be 3.3V compatible.
  2. What power should I use?
    2.1 Should I supply 5V to AS5048A (but SPI communication pins will be connected to 3.3V digital pins of ESP?)
    2.2 should I connect 5V pin of AS5048A with 3.3 power supply in ESP?
    2.3 . should I resolder green wire and supply 3.3V to AS5048A chip? (that could be tricky, it’s so small).