3.3v~5v and 5v components (How to tell which ones I can use with Xiao)

I’ve been using an Arduino Uno and I just ordered a few Xiao. I am trying to figure out which components I can use so I can order those, as well.

Am I correct in assuming if it says 3.3v~5v, that means it can run on 3.3v but can handle being plugged into a 5v pin?

Also, I have been looking at rotary encoders. They all are listed at 5v. I am getting conflicting and partial information about how to make this work. Perhaps I am blind, but also no practical examples. One source says they work just fine and mentions handling the voltage through code. Another mentions pull up resistors. Can a rotary encoder work with a Seeeduino Xiao? If so, what avenues should I investigate to make it work.

I have googled and googled and perhaps I am just clueless, but I am not finding many resources for this particular board. Any guidance would be appreciated.