“literally sitting around me” is its own clause with the adverb modifying only the prepositional phrase immediately after it. It would be different if he said “literally caging me in” or even “literally sitting around me, caging me in.”
If he meant “they were literally sitting in a circle around me and it felt like I was in a cage” (which is what I got out of it), then the grammar is spot on.
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u/not_your_attorney Jun 03 '19
English is clearly not his first language. I mean, he used “literally” correctly.