How does a regenerative braking system work in a 3 phase industrial motor application?

i have a 480v 3 phase system with an ac motor used on a hoist application. it has SEW brand VFDs with a regenerative drive. it keeps getting a "brake chopper" error. we have replaced the brake itself, the encoder for the motor (its only function is to show motor direction. it isnt counting). and we have replaced the VFD and the REGEN drive. have checked continuity to encoder cable.