Any sheathing mods that is compatible with weapons rotate? Ultimate weapons sheathes mod is not.

I'm not sure but I'd guess not. Weapon Rotate adds a script to each weapon, and a sheathing mod would also need to add a script to the weapons as well. I don't know of anyone who combined Weapon Rotate scripts with sheathing.

Yep. It's the script that "sheathes" the weapon by removing it and replacing it with a copy that either sits on your character as is or in a sheath. It probably wouldn't be hard to combine the two scripts, but it's more complicated than using something like TESTool to do it.