Wrap text does not adjust row height in Excel
Symptoms
In Microsoft Excel, if you manually modify the height of a row and then format a cell in that row to wrap text, Excel does not change the height of the row to fit all the text in the cell.
Cause
This behavior occurs if you have manually modified the height of the row.
Workaround
To adjust the height of the row to fit all the text in a cell, follow these steps:
Select the row you want to adjust the height.
In Microsoft Office Excel 2003 and in earlier versions of Excel, point to Row on the Format menu, and then click AutoFit.
In Microsoft Office Excel 2007 and later versions, click the Home tab, click Formatin the Cells group, and then click AutoFit Row Height.
If your Excel sheet contains merged cells, visit the following Microsoft website:
You cannot use the AutoFit feature for rows or columns that contain merged cells in Excel
Status
This behavior is by design.