It’s generally recommended that your baby should be unswaddled when breastfeeding. This is mainly due to research suggesting that babies using their hands is often how they locate the nipple.  Breastfeeding while swaddling could lead to latching issues, but not always. In any case it's good to let them stretch their arms, and learning how to use their hands to locate things is a natural part of growing. Having free arms can often make the baby feel more safe and comfortable also which  can increase the chances of latching.