Re: Encoders
No, having worked for a manufacturer of BMSs, I can tell you, each supercell (a bunch of cells in parallel, producing 2-4.2V collectively) is individually monitored, twice. You can't rely on string voltage to tell you if one cell is failing. Similar for temperature. This is why E-Scooters (which are not well-regulated, unlike automotive batteries) keep exploding, whereas EVs don't explode quite so often. The only thing that you can monitor at string-level is current.
As for encoders, some (less efficient) drivetrains use Hall sensors for low-speed commutation and back-EMF for high-speed, but the more efficient designs use synchronous commutation, i.e. they rely on an encoder. They can fall back to other methods of commutation in the 'limp mode' that I mentioned.
> if you make strings of individual cells you would lose the entire string. if a single cell goes out in a bank the rest of the bank still works and does not interrupt the string so you don't lose the string.
As I said, they use multiple strings, made of parallel groups (called supercells). But if a cell within a supercell fuses, then the capacity of the supercell is lowered, so you need to monitor the (super-)cell voltage to detect this, otherwise the lower-capacity supercell will reach a dangerous voltage before the whole string does.