It is possible for spacetime to be rotating, though we need to be very careful about what we mean by "rotating" in this context. The spacetime around a rotating black hole is rotating in this sense. Mathematically we describe the rotation using an equation called the Kerr metric.
But spacetime cannot just rotate in any arbitrary way. The geometry of spacetime, including its rotation, is linked to the way matter and energy are distributed in that spacetime by Einstein's equation for general relativity. The geometry of the spacetime outside a rotating black hole is controlled by the mass and angular momentum of the black hole.
So the geometry of the spacetime in and around a rotating galaxy is controlled by the mass and angular momentum of the galaxy. We can calculate this and in fact we find the "rotation" of the spacetime in and around the galaxy is so small it can be completely ignored. It certainly could not affect the motion of the stars orbiting in the galaxy.
So the answer to your question is that we cannot explain the orbital motion of stars inside galaxies by rotating spacetime, because any rotation of spacetime is determined by those stars. We do need there to be dark matter present in the galaxy.