Update for swaywm/wlroots#1403

sway/desktop/render.c

@@ -1079,15 +1079,22 @@ renderer_end:
 		wlr_render_texture(renderer, root->debug_tree,
 			wlr_output->transform_matrix, 0, 40, 1);
 	}
-	if (debug.damage == DAMAGE_HIGHLIGHT) {
-		int width, height;
-		wlr_output_transformed_resolution(wlr_output, &width, &height);
-		pixman_region32_union_rect(damage, damage, 0, 0, width, height);
-	}
 
 	wlr_renderer_scissor(renderer, NULL);
 	wlr_output_render_software_cursors(wlr_output, damage);
 	wlr_renderer_end(renderer);
+
+	int width, height;
+	wlr_output_transformed_resolution(wlr_output, &width, &height);
+
+	if (debug.damage == DAMAGE_HIGHLIGHT) {
+		pixman_region32_union_rect(damage, damage, 0, 0, width, height);
+	}
+
+	enum wl_output_transform transform =
+		wlr_output_transform_invert(wlr_output->transform);
+	wlr_region_transform(damage, damage, transform, width, height);
+
 	if (!wlr_output_damage_swap_buffers(output->damage, when, damage)) {
 		return;
 	}