Is it possible to configure some lines to wrap while others overflow?
No, that’s not possible.
Is this something that would be possible to introduce via an extension, or is this just not possible due to the underlying implementation?
It should be possible to set certain lines to wrap via CSS with line decorations, but the editor has some logic where it acts differently depending on whether it considers line wrapping to be globally enabled (for example when estimating the height of lines it hasn’t drawn yet), which could lead to flakiness. Setting the editor to line-wrap but disabling it for certain lines might sort of work, but no guarantees.
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