"In 2022, the West Bank had about 199 settlements and 220 outposts, and as of 2021, the area of the Israeli settlements was about 201.1 square kilometers, representing 3.6 percent of the total area of the West Bank."
https://carnegieendowment.org/sada/89215
Yes, Area C is 60% of the West Bank but the settlements take up a small % of that area and Israel was willing to hand the administration of that area off to the PA under the Oslo accords. The small amount of settlements in that area is where the land swaps would have come into play. Israel would have kept a small part in exchange for other land rich in minerals.