You can run step/dir drives closed loop by feeding the encoder data back to LinuxCNC and running the step generator in velocity mode. I suspect its a little harder to get the best performance this way as now you have 2 position PID loops in series
(linuxCNCs PID loop and the drives PID loop)
I have this kind of drives and are working OK
First you have to autotune the drive without mechanics connection
Then you have to adjust the PID loop in LinuxCNC (first without mechanics conection and then with mechanics conection)
New (low cost) digital drives usually have step+direction and +-10V command input, high end usually have fieldbus control like thercat or profibus, but in my case i decided to use a low cost digital drive with step+dir instead of +-10V
The conection is: LinuxCNC (step) => (step) PID (Velocity) => Mesa card (In velocity mode) => Pulses (at velocity speed) => (Step+dir or quadrature) Drive => Motor
Encoder (motor) => Drive (quadrature) => Mesa card => PID (Velocity ) and LinuxCNC (position)