Fwiw I guess those bar type scales do look like a much cheaper alternative to even the more conventional lower end $300-$400 dro's with glass or magnetic scales. Unfortunately and just as you've found, not only do they suffer high failure rates, but also longevity issues just due to the cutting fluids, oil and swarf laden environment there expected to operate in. There literally not designed to operate in that kind of environment. Secondly it takes a fair amount of digging to research some metrology basics that many either don't fully understand or possibly get confused about. I've seen that happen on multiple YouTube videos where many assume a measuring tools display resolution is it's actual accuracy level. Resolution is simply how many digits there are to the right of the decimal point. Any measuring tools accuracy level involves it's repeatability which is directly related to the materials used, possible heat treating, grinding, and the care and accuracy that went into building it to obtain an expected high level of repeatability. As an extreme example, you could have a tool with 1/1,000,000ths divisions on an analog or digital display, but it's made so poorly it only has a repeatable accuracy level of + - .010". Since nothing is ever "perfect", world wide metrology manufacturing standards even if followed by any manufacturer also allow a + - one count inaccuracy and repeatability while still passing the most stringent of quality controls. In other words a display with .001" divisions can vary as much as .002" and still pass. Yes it should be better than that and almost everything I've checked with a Mit. or Starrett name on it generally falls about in the middle of the allowable. In comparison to those much cheaper Igaging bar scales, the same product built by Mitutoyo or Starrett are at best sort of a digital counter that should measure somewhere within .002" of repeatability and accuracy in the absolute best of conditions.
My Mitutoyo digital calipers as an example have a resolution down to the nearest .0005". I've tested them and my own technique on high end gauge blocks by first allowing those gauge blocks and the caliper itself to thermaly stabilize to the same approximate temperature for a couple of hrs and ensuring everything was spotless. Under those almost ideal conditions I can get roughly within .0015"- .002" for there average repeatable accuracy. So in reality that 1/2 thou digit can be ignored since it's completely meaningless. Yet I've seen YT posters quoting that half 10th digit on sub $20 digital calipers as if that level of measurement accuracy was even obtainable. With more typical shop measurement conditions, part surface quality etc I'd expect no better than maybe being within .005". If my known part accuracy level has to be better than that then it's obviously time for a micrometer. Compounding the problems on a lathe with even the most expensive of these bar type scales is any inaccuracy is doubled when machining a parts diameter. Yes they can be of real help instead of having to count hand wheel turns, but under those average shop conditions I'd expect not much better than maybe .005"-.010" and only that if I personally ran test checks of each bar scales accuracy using known size and measured test items such as gauge blocks, 123 blocks etc. Even my + $3k Newall mill dro and it's Micro Syn scales came with a factory recommendation of running those same test checks after it was installed. It even allows error compensation to be programmed in if any accuracy errors are found during what Newall calls scale mapping. In my opinion some of the manufacturer's depend on the lack of knowledge by end users simply to make sales to people with far higher expectations than the equipment can deliver. As George said your best option would be to buy something a whole lot better that does meet your expectations. Most here seem to understand how useful well made qctp's and there repeatable tool positioning is for multiple part production and are willing to pay to get that. But + - .0001" accuracy on it is wasted without being 100% confident your dro is capable of the same.