At times the code may take up too much horizontal real estate that you may have to perform a vertical scroll to read it. It could really become quite irritating to read code in this way, hence almost all text editors and IDEs have the "Word Wrap" option.
There are multiple ways in which you can toggle the word-wrap feature in VS Code, let's see them one by one,
Option 1: Using the keyboard Shortcuts
This is the quickest way to enable or disable word-wrap.
Windows: Alt + Z macOS: Option ⌥ + Z Linux: Alt + Z
Option 2: Using the Palette
Press Ctrl + Shift + P on Windows, or, Command + Shift + P on macOS to open the VS Code Palette.
Now type Toggle Word Wrap to activate it.
This option is really handy if you forget the keyboard shortcut and want to recall it.
Option 3: Using the Menu Options
There is always the Menu that you can visit to perform Word Wrap, but is the slowest as required the use of the mouse or the trackpad.
Go to Menu: View -> Word Wrap
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