I tested this out with the most recent version of the tool, and it seems to be working. As long as you have the width set to any numeric value or set to Auto with horizontal alignment set to Stretch, it should work. You will also want the height set to auto or a large enough value to hold the text overflow. If you have auto set and horizontal alignment set to Left, Right or Center, the width will grow with the text. In that case, you won’t get Word Wrap. Otherwise, it should be fine. I would make sure you have the latest, and if that doesn’t fix it, I would remove and re-add the text layer, setting the appropriate values.
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