Swaddling Issues

When to stop swaddling your baby?

My Bub is 2-month old and she always had her one arm out of her swaddle every time she wakes up. I'm using a muslin wrap.

Are there any alternatives? I tried the cocoon type sleeping bag, but she doesn't want it because her movements are restricted.

I was thinking to stop swaddling her, but she's having sudden reflex/movements while sleeping which is waking her up. So I'm not sure if tucking her in a blanket would be a safe option.

Any tips Mumma?