AX2850HE not working in closed loop mode

We have been trying to get the closed loop feedback working, but are unable to do so. We have 2850HE. The encoder are working fine as I can see the channel A and channel B pulses. When we use the encoder tab to control the motors, the motors do not change their speed based on the encoder feedback. Could you please provide some technical support regarding the same?

First make sure that the controller sees the encoder.
In roborun, verify that the controller is reported as and AX2850 and check that the Encoder firmware ID is also reported.
If you get that far, then in the encoder tab, click on run and verify that the two LEDs for the limit switches change as you rotate the shaft. Each of the 4 LEDs reports the status of the encoder outputs.

Is there an option in the software somewhere, where once you give it a speed, the encoder/motor module automatically compensates for any changes (like climbing up a hill or going down a hill) by increasing or decreasing the speed of the motors? Basically closed-loop feedback control.
What I see is that Roboteq software tell me the measured speed and rpm, instead of acting on it.

You need to configure the controller to operate in closed loop mode. You can select position or speed mode.

I have configured it to be closed loop speed, however once given the speed, it does not auto-correct. Since I have access to the measured speed from the encoder module, I can write my own code to do that, but I was hoping that the motor controller itself would self-correct? Is that right?

It should auto correct. To test, go in the run tab. Click on run and move the sliders. The measured speed should equal the command.