Past exam of the logic and set theory course of the University of Oxford / 2008 / B / 6 / 2

This encoding fails. Choose two distinct sets $0$ and $1$, for example the first two finite von Neumann ordinals. The distinct ordered triples $(0,0,1)$ and $(0,1,1)$ both encode asIndeed the repeated singleton in the first encoding and the repeated two-element set in the second disappear when forming an ordinary set. Thus the middle coordinate cannot always be recovered. The issue is loss of multiplicity, not a failure to construct a set.