Our game — Oversummoned — uses many cute 2d-sprites (demons and decorations) with completely 3d surroundings (tiles and houses)

At first, we rotated sprites to look at camera, but they started to clip with 3d objects 😈🏠. So we devised a hack: our sprites rotate only around vertical axis, and are scaled vertically by sqrt(2), so they look unmodified (camera looks down at 45°).

In-game view

Editor view and in-game view of a grabbed demon.

When demon is grabbed player sees it turned upside-down, but actually it's parallel to the ground...

Editor view of a demon — it is as tall as a house!