I tested this line-wrapping myself. What I learned now is...
When Soft Wrap is enabled, lines break at the vertical line.
When Soft Wrap is disabled, lines break at edge of window.
Line Wrapping must be enabled in both cases (CTRL+W).
If I move the vertical line when using Soft Wrap, I have to toggle line wrapping
(2x CTRL+W) to get the new width applied.
Seems to be working correct for me.

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