I know how frustrating this can be - and the manual makes it seem so simple and intuitive. But it actually does NOT do what they lead you to believe it will do.
Your approach is correct. But remember that the limit for the WSE is 1. That does not mean it must be 1, it must be at the most 1.
Squeeze the encroachment at the next-to-last d/s section, as you are doing, trying moving floodway to the right or left, keeping the distance between encroachments the same. Play around with it until you get say to 0.8 or 0.9. Then move on. Do the next cros-section the same way. Run it. If this section will not cooperate, go back to the next-to-last section and open or squeeze the encroachments again. You may get the number a next section little higher.
Remember that this is a step backwater calculation. Whatever is d/s affects what is u/s. It is tedious as all he11. You'll spend two or three days on it and the best you'll get is 0.8 and 0.9 all the way through.
I'm from NJ, where we only want a 0.2 rise with encroachments. It is still just as hard.