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Sadly it seems it currently can't deal with rotated monitors ;-( I really do love my vertical 24" monitor with full screen terminal.

I believe that's been possible since 1.0-alpha.1 : https://github.com/swaywm/sway/issues/1735

It is, I have it setup in this configuration.

I also personally found sway makes setting offsets for 2 monitors somewhat easier than X11.