2D or 3D settings for a 2.5D game?

By 2.5D, I mean 3D models in a 2D environment- gameplay a long the X and Y axis. No sprites are used at all.

Would I be using 3D physics rather than 2D physics? Would I still set the camera to Orthographic? Spherecasting instead of circlecasting for checking grounded status?

Basically, are all the new 2D features in Unity mainly for sprites, rather than a 2D perspective?

Yes, 2D functions and components only work with Sprites (anything that has Sprite Renders). I know this because I am in the process of making a 2.5D game and I have been doing it for half a year now. Use 3D. Also, you could use orthographic or perspective mode… whatever you like

Choosing 2D or 3D when setting up a new project just changes a few default settings. You can always change them later. Unity will run your project in a 3D environment either way.

2D physics will always be faster on performance. However 3D physics can give you better accuracy with a 3D model. This will depend on weather your model has any significant dimension changes along the Z axis.

Orthographic versus perspective is always a matter of what looks best for your game. You can use a perspective camera in a 2D game, and an orthographic camera in a 3D game without any problems.

Can’t comment on the new 2D tools as I haven’t started playing with them yet.