I just tried #sway 1.10.1 on #Linux but still have the same bugs I had with 1.10: All my desktop backgrounds now black, whether I use a solid background or an image as a background.
I'm going to return to using #swayfx and hope that after SwayFX updates to be based on 1.10.1 that this bug doesn't come with it.
There are a still a number of open 1.10 regressions in the Sway bug tracker, so I'm not trying to isolate and report this as a new issue now.