As you mentioned, this is a known bug with AIR. It is not consistent, either. On some devices, it is in the correct orientation but in some (and all iOS devices, I believe, though I haven't fully tested that), it is rotated as you are seeing. For example, it was always oriented correctly on my Nexus 4 and on my Nexus 5, but a friends Moto X is rotated incorrectly.
Unfortunately, I don't believe there is anything you can do short of having the user do a calibration (i.e. overlay a straight line and tell them to place it horizontally and click a button) and rotating the camera display and any images you take with the display.
That being said, if you are using the camera to take photos, I highly recommend using CameraUI
instead, which is the native implementation.