In Ref 1 we called these things semi-Eulerian circular designs or semi-Eulerian quasigroups. They exist for all odd $n\ge 7$.
I'll state the problem again. Find an Eulerian circuit in $K_n$ which (considered as a circular sequence of $\binom n2$ vertices) has every unordered pair of vertices exactly once at distance two.
An example is $$(0, 1, 2, 0, 3, 4, 1, 5, 6, 0, 5, 3, 1, 6, 2, 4, 5, 2, 3, 6, 4).$$
If the sequence is $(a_i)$, define the binary operation $\circ$ by $a_i\circ a_{i+1}=a_{i+2}$ for all $i$ and $x\circ x=x$ for all $x$. Then the multiplication table of $\circ$ is a Latin square, i.e. it defines a quasigroup. However not all quasigroups are suitable as usually the sequence starting $(0,1)$ repeats before exhausting all pairs.
The relevant theorem is Theorem 2.
Incidentally, even though we only give one example for each $n$, computational experiments suggest that there are very many.
Max asked whether it is possible for each unordered pair to also occur exactly once at distance 3. We investigated that but as far as I can determine we never found an example or proved it impossible. We did find the similar example below, though. It is an Eulerian circuit of a directed complete graph with 17 vertices. For each unordered pair $\{x,y\}$, $y$ appears exactly once 3 steps, 2 steps and 1 step before $x$, as well as 1 step, 2 steps and 3 steps after $x$.
$(0, 1, 14, 4, 11, 0, 3, 1, 5, 0, 10, 6, 14, 13, 16, 6, 8, 1, 2, 15, 5,\\
12, 1, 4, 2, 6, 1, 11, 7, 15, 14, 16, 7, 9, 2, 3, 0, 6, 13, 2, 5, 3, 7,\\
2, 12, 8, 0, 15, 16, 8, 10, 3, 4, 1, 7, 14, 3, 6, 4, 8, 3, 13, 9, 1, 0,\\
16, 9, 11, 4, 5, 2, 8, 15, 4, 7, 5, 9, 4, 14, 10, 2, 1, 16, 10, 12, 5,\\
6, 3, 9, 0, 5, 8, 6, 10, 5, 15, 11, 3, 2, 16, 11, 13, 6, 7, 4, 10, 1, 6,\\
9, 7, 11, 6, 0, 12, 4, 3, 16, 12, 14, 7, 8, 5, 11, 2, 7, 10, 8, 12, 7,\\
1, 13, 5, 4, 16, 13, 15, 8, 9, 6, 12, 3, 8, 11, 9, 13, 8, 2, 14, 6, 5,\\
16, 14, 0, 9, 10, 7, 13, 4, 9, 12, 10, 14, 9, 3, 15, 7, 6, 16, 15, 1,\\
10, 11, 8, 14, 5, 10, 13, 11, 15, 10, 4, 0, 8, 7, 16, 0, 2, 11, 12, 9,\\
15, 6, 11, 14, 12, 0, 11, 5, 1, 9, 8, 16, 1, 3, 12, 13, 10, 0, 7, 12,\\
15, 13, 1, 12, 6, 2, 10, 9, 16, 2, 4, 13, 14, 11, 1, 8, 13, 0, 14, 2,\\
13, 7, 3, 11, 10, 16, 3, 5, 14, 15, 12, 2, 9, 14, 1, 15, 3, 14, 8, 4,\\
12, 11, 16, 4, 6, 15, 0, 13, 3, 10, 15, 2, 0, 4, 15, 9, 5, 13, 12, 16, 5, 7)$
1 R. E. L. Aldred, R. A. Bailey, B. D. McKay and I. M. Wanless, Circular designs balanced for neighbours at distances one and two, Biometrika, 101 (2014) 943-956.