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Based on my testing environment, the Wrap Text option does not appear within the code block.
In this case, I recommend that you create a ticket with the Technical Support team so they can perform a deeper investigation into the issue.
To create a support ticket with Microsoft Technical Support, you can refer to the documentation below:
Get support - Microsoft 365 admin | Microsoft Learn
Additionally, I would like to suggest a temporary workaround that you can try while waiting for assistance from a Microsoft engineer:
Step 1: Click on Make this collaborative
Step 2: Under Display options, turn off and then turn on Line wrap
After that, long lines will automatically wrap.
In addition, this feature allows real-time editing. If you need to add or update anything in the code block, you can edit it directly there.
Furthermore, you can also configure permissions at the same location to restrict who is allowed to edit this code block.
I hope this information is helpful
If you have any questions or need further assistance, please feel free to share them in the comments on this post so I can continue to support you.
I look forward to continuing the conversation.
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