From here:
Quote
display_rotate isn't designed for the LCD, doesn't adjust touchscreen coordinates, and will also affect the HDMI display if you try to use both displays, so should be avoided if possible.I think what the correct display orientation is will be something not everyone will agree on. However if you prefer the other orientation then lcd_rotate=2 is the solution.
I think you should try lcd_rotate=2 instead of display_rotate=2.