Wayland works differently than X11 in this regard. Using Fedora 40 on a Lenovo Yoga 730, I had to enable Tablet Mode from the KDE settings and then auto-rotation worked fine
Surface devices might be different though, so I can't say too much about them. There may be a specific sensor library or tool required, since Wayland communicates with your device differently than X11
It's best practice to keep it separate, and that mostly just has to do with how the different file systems are handled.