Step 1: Analyze option (A).
\( \text{CH}_3\text{Cl}_2 \) (methylene chloride) has been widely used as a propellant in aerosols due to its low toxicity and ability to release pressure. This statement is correct.
Step 2: Analyze option (B).
DDT (dichlorodiphenyltrichloroethane) was widely used as an insecticide due to its effectiveness in controlling malaria by killing mosquitoes. This statement is correct.
Step 3: Analyze option (C).
Freon 1, 2 is a type of chlorofluorocarbon, which is manufactured from trichloromethane (chloroform), but it is not produced by the Swartz reaction. The Swartz reaction produces aryl halides, not Freon 1, 2. Therefore, this statement is incorrect.
Step 4: Analyze option (D).
Iodoform has antiseptic properties, and its action is due to the release of iodine (\( \text{I}_2 \)) when it comes in contact with the skin. This statement is correct.
Step 5: Conclusion.
Thus, the incorrect statement is option (C), as Freon 1, 2 is not manufactured by the Swartz reaction.