The menu under File > Preferences or press Ctrl+, (on Mac Code > Preferences > Settings or press Command (or Cmd) ⌘+,) provides entries to configure user and workspace settings. You are provided with a list of default Settings.
Set editor.wordWrap: on in your User Settings or Workspace Settings under preference.
Select the below options to change to the desired settings.
Off - Lines will never wrap.
on - Lines will wrap at the viewport width.
wordWrapColumn - Lines will wrap at "Editor: Word Wrap Column".
bounded - Lines will wrap at the minimum of viewport and "Editor: Word Wrap Column".
You can toggle word wrap for the VS Code session with Alt+Z (macOS: Option (or Alt) ⌥+Z) or select View > Word Wrap from Menu.