Compare the current counts of distinct characters in both strings. If they are already equal, return `true` only if a swap can maintain this equality (e.g., swapping identical characters).

For each character in `word1`, consider swapping it with every character in `word2`. After each swap, check if the distinct counts of both strings become equal. Early termination if a valid swap is found.

Instead of brute-forcing all swaps, precompute the frequency of each character in both strings. Use these frequencies to determine the impact of a swap on distinct counts without recalculating from scratch after every swap.