 Solution

Use three positive-edge-triggered D flip-flops, all driven by the same clock signal $CLK$. Write the current binary representation as $B2B1B0$, with $B0$ the least significant bit. The next state is the current value plus one when $A=1$ and minus one when $A=0$, in each case modulo eight. A bit toggles under exclusive or with a one.

For upward counting, $B1$ toggles when $B0=1$, while $B2$ toggles when $B1=B0=1$, the respective carry conditions. For downward counting the corresponding borrow conditions are $B0=0$ and $B1=B0=0$. Define the shared inverted direction $N=\neg A$ and the two direction-match signalsEach $T_i$ is one exactly when $Bi=A$: it equals $Bi$ for upward counting and $\neg Bi$ for downward counting. Thus the Boolean functions for the three D inputs areImplement this with two NOT gates for $N,D_0$, four two-input exclusive or gates for $T_0,T_1,D_1,D_2$, and one two-input AND gate. Connect $D_i$ to the D flip-flop whose output is $Bi$; feed the three outputs back into the indicated gates. All three flip-flops capture simultaneously, so each equation uses the old state.

For completeness, the state transition table is

Every three-bit state is valid. A reset may initialize the binary counter to zero if required; counting itself needs no extra state. The direction input must meet the setup time and hold time requirements at the active clock edge.