The DIN should show +5V as there’s a 10k pullup attached. You could try connecting RC1 instead of RC2, as they pulse at the same time anyway.
The incremental behaviour is weird, it’s like the data is being latched on every clock. You’re sure you’ve got RC and SC correct? No shorts, including any of pins PB15, PB13, PB12, PD10 on the Discovery board?