When using a Moving reference frame, only the governing equations are transformed in the MRF to account for the movement, but the mesh and/or your rotating wheel are not. You can read about this here: 2.2.1. Equations for a Moving Reference Frame (ansys.com)
If you want to have moving parts, you may consider using a sliding mesh model, although this is meant for unsteady problems.
You can modify your MRF setup into an Sliding Mesh model directly by using the following command: mesh/modify-zones/mrf-to-sliding-mesh
10.3. Flow in Multiple Moving Reference Frames (ansys.com)
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