Have you installed this package?
https://archlinux.org/packages/?name=iio-sensor-proxy
Orientation Sensor
You currently need to install iio-sensor-proxy and reboot to make the orientation sensor work. This will disable the keyboard and touchpad, and invert the side volume buttons when the screen is held at the right orientation or is folded. The Gnome desktop environment does support the rotation natively. Other desktop enviroments may need extra software. You could compile and use this daemon [1] written in C.
This ^^^ is from the Archwiki:
https://wiki.archlinux.org/title/HP_Envy_X360_15-bq102ng
Not your exact model (but probably close enough).