Because this was before the days of cheap LIDAR (which is the technology we’d use now if we had the project to do over), our plan was to use either slotted optical switches or magnets (placed near Hall-effect sensors) on a pulley wheel attached to the weight stack.
We tried both approaches and concluded that a weightroom environment was low enough in dust usually that an optical approach would be easier to implement.
But along the way, we’d made styrofoam wheels with magnets glued to them as well as wheels with alternating black-and-white regions that a reflective photodiode-LED combination could see.
In the end, in cooperation with our mechanical engineering partners on the project, we concluded that a transmissive optical switch and a slotted wheel would be the most reliable approach.
Ah, to have had one of the short-range semiconductor LIDAR chips on the market today…