I was working with not problem with the official RaspberryPI 7inch Touchscreen (using RPI3 with armv7 build)
No problem with the touchscreen at all.
I recently perform an upgrade using pacman.
After rebooting all works as expected except the touchscreen. The top side of the screen is dead and cannot read touch (i'm usign with display_rotate=2 but also with others combination doesn't work)
I was suspecting on hardware problem so I re-flash the SDCard with the previous image version (before the "pacman -Syu").
Booting with the old SDCard results in work with no issues.
Someone experiencing that? I don't know if this problem is related to Xorg/evdev (using evdev in myconfiguration)
another thing, with the old SDCard i receive touch events on Chromium opened on lwm.
After the upgrade not only the dead zone appears but also the touch events gone (it seems that the touchscreen acts like a mouse I suspect)
Regards
Jacopo