If the SORTIN data set has RECFM=FB and LRECL=1200 as you say in your first post, then the job would work fine and you'd get DFSORT messages like this:
ICE088I 0 JRS3 .S1 . , INPUT LRECL = 1200, BLKSIZE = 27600, TYPE = FB
ICE210I 0 OUT1 : EXCP USED, LRECL = 1200, BLKSIZE = 27600, TYPE = FB (SDB)
ICE210I 0 OUT2 : EXCP USED, LRECL = 1200, BLKSIZE = 27600, TYPE = FB (SDB)
ICE054I 0 RECORDS - IN: 4, OUT: 4
ICE227I 0 OUT1 : DELETED = 0, REPORT = 0, DATA = 4
ICE228I 0 OUT1 : TOTAL IN = 4, TOTAL OUT = 4
ICE227I 0 OUT2 : DELETED = 4, REPORT = 0, DATA = 0
ICE228I 0 OUT2 : TOTAL IN = 4, TOTAL OUT = 0
For your example input, all of the records would go to OUT1 since none of them have X in position 10.
Since you received the ICE222A message, it appears that you gave some bad information in your first post. You received a message like this:
ICE222A 0 1100 BYTE FIXED RECORD LENGTH IS NOT EQUAL TO 1200 BYTE LRECL FOR OUT1
The first value would be the LRECL of your input file and it does NOT match the 1200 byte LRECL for your output file.
Please give the correct RECFM and LRECL of your input file and expected output files.
Please show the complete JES log for your run.
Note that you have duplicate //OUT1 DDs - DFSORT will use the first one it finds. Same with your duplicate //OUT2 DDs.