The disable signal in opto-in 4 should work. Please check:
1. Drive doesn't go into SPI mode: make sure input mode is not set to "Force SPI" (GDtool->General settings).
2. USB cable is not plugged when powering up
3. There is 3-5V applied between IO_COM and IN4. Connecting one jumper from 5V alone won't work, IO_COM would need to be connected to GND.
There is an alternative firmware for VSD-E/XE-160 that disables error recovery move. Please find attached firmware file.