My baby went through the same thing. Swaddled until about 7 mos, and he would fight out of the swaddle, but couldn't sleep without it. Unless you try to find a super-strength swaddle, it might be time to ditch it. This is what we did - I would swaddle him before naps only since he slept a bit better at night. I think that helped him get used to being unswaddled. Then at naps, I would swaddle, but once he broke out, I wouldn't reswaddle. I would return if he cried hard, and just do PU/PD or pat shush. It was a very tough week or two, but we haven't looked back since.
Let us know how it goes! I know how frustrating it can be!!!