Arms can rotate at the shoulder indefinitely without anything getting twisted up. (Think butterfly stroke.)
Arthur C. Clarke suggested that wheeled organisms might evolve on a planet with lots of large, smooth lava flats.
Strictly speaking, arms don’t rotate (about their own axes); they articulate. Not the same thing, from a mechanical point of view. Try turning your hand completely over (from palm-up to palm-up, 360 degrees.)
Stranger
I think you’ve been reading too much Phillip Pullman, Marie.
Apparently, I’m the only one here who is familiar with an SF story that dealt with actual human beings getting wheels? I read it many, many years ago, in one of the Science Fiction magazines (probably Asimov’s). It was called “God’s Wheels”, if I remember correctly, and the plot was that a couple of teenagers (I think) just suddenly woke up with wheels instead of feet. They were studied, feared, persecuted, and then more people started getting the wheels. I think the author may have hand-waved about how the wheels actually worked.
I tried doing a Google search, but since I don’t remember the author’s name, all I get are a lot of religious articles. Surely someone else must remember that story?