The XY-plaquette model is the most straightforward lattice realization of a broad class of fractonic field theories that host quasiparticles with restricted mobility. The plaquette interaction appears naturally as a ring-exchange term in the low-energy description of exciton Bose liquids, cold atomic gases, and quantum dimer models. Using first-principle Monte Carlo simulations, we study the phase diagram and the vortex dynamics in the XY-plaquette model on a square lattice in two spatial dimensions. In its minimal formulation, the model contains a ring-exchange plaquette term in two spatial dimensions and a standard XY-link term in the (imaginary) time direction. We show that the phase diagram of the minimal XY-plaquette model possesses two phases: (i) a disordered vortex-dominated phase in which a single percolating vortex trajectory occupies the whole 3d spacetime; (ii) a partially disordered phase in which the vortices become partially immobile, with their worldlines strictly confined to one or several infinite two-dimensional planes. The spatial positions and spatial orientations (along $x$ or $y$ axis) of these vortex domain walls appear to be spontaneous. Individual vortices form a disordered system within each vortex domain wall, so the fractal spacetime dimension of vortex trajectories approaches $D_f = 2$. We argue that the appearance of the vortex walls could be interpreted as a consequence of the spontaneous breaking of a global internal symmetry in the compact XY-plaquette model.