Yes they do. On the way to Jacksonville, NC (Cherry Point Marine Airbase) two Osprey's were flying right over my car and you could clearly see that the Engines were parallel to the ground.
I noticed when the props are tilted forward to go into airplane mode, that they don't tilt down very far and the vehicle accelerates very quickly. Do they ever fly this aircraft with the engines tilted all the way down parallel to the ground? Seems like there would be some major speed involved.
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The fullsized test flights progressed very slowly before they began to transition... very cautious, and still there were many mishaps.
Taxiing is done at 45 degrees or much less.