Let be the Pauli X eigenstates. Encode
Both have zero total eigenvalue, so is the identity on their span. This is the decoherence-free subspace obtained from the previous code by applying a Hadamard gate to each physical qubit.
Since and , a correlated error exchanges the codewords. It acts as logical , not as harmless identity. The Pauli Y gate obeys and , so
The phases cancel within each codeword. Thus either unknown correlated gate gives a logical bit error on a general encoded state, though a logical eigenstate is unchanged as a physical ray. The code prevents collective rotations, not every possible correlated error.

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