Katalon Studio 7.x is built upon Eclipse. I do not know the exact version of Eclipse, but old version of Eclipse does not have word wrapping feature at all. Therefore KS can not as well.
As the following post tells, newer version Eclipse supported word wrapping feature:
Eclipse Neon (4.6), release date June 2016, includes word wrap for text editors.
If we want Katalon Studio to support word wrapping, we need to ask Katalon Team to rebuild Katalon Studio 8.x upon newer version of Eclipse and toggle “word wrapping” ON as default.
Call out @devalex88