VSCode doesn’t support this out of the box. But you can install the Rewrap
extension, which allows you to format the block that your cursor is currently in by pressing Alt + Q.
Rewrap
requires no further settings, since it reads VSCode’s settings to obtain the column at which to break.
Rewrap
also supports automatic wrapping (off by default): https://github.com/stkb/Rewrap/wiki/Auto-wrap