How do I setup this Aeotec zw089 Recessed Door Sensor?

What you’ve detailed there seems right to me. HA is dependent on how Open Zwave reports data back. This reminds be of someone that was working with a door-hinge sensor a while back. They had to set up a template sensor to get a useful true/false to build automations from.

You might be able to do this if you can find an entity that’s reflecting the 0/255 traffic you’re seeing in the log. See if there’s another entity based on the “aeon_labs_zw089_recessed_door_sensor_gen5_2” style name that was autogenerated. With my TriSensor, I got 4 or 5 entities when pairing it.