At best, intermittently. If I could get it to always be one way or the other I'd show you screenshots. I just made a test entry that has never been done before on Genesis 24:1 (my own notes) and the word wrap was fine, though. So now I'm doubting my memory. I remember making a new note -- but can't remember if I had erased something I had previously written or started fresh. I might very well have erased, and if so, it would make sense that there might be a word wrap issue if there had been html in the previous note that I was re-writing. I'm sorry to be so unclear on this. It doesn't help when trying to hunt down a glitch.
I went into "Study in the Book of Revelation" which is user editable, but is a module made by someone else that I downloaded. Interestingly, the first entry was not word wrapped. I went in and used "style and format" cleaner and it cleaned it up on the first note. I closed Sword Searcher, then went back in and looked in the same "Study in the Book of Revelation" book and the very next note was fine on word wrap, though the following note (all in order) was showing in light mode although I was in dark mode. But it is word wrapped too. *scratches head*
Sometimes I have made a note, then deleted it, but it shows up as a comment, that just happens to be blank. So it's not brand new. It could be that I had been working on those kinds of notes when the word wrap issue came up on what I was calling a "new note".