For me, the key binding "Alt+Z" (toggle "Word Wrap") wasn't working within VSCode on Windows 11. The computer I'm using has an AMD graphics chip, and there's an "AMD Software" app that, by default, allocates multiple keyboard shortcuts at the system level, including "Alt+Z".

I opened the AMD Software app, opened the app's SETTINGS page, selected the HOTKEYS tab, and disabled the app's keyboard shortcuts. Afterwards, I was able to use the "Alt+Z" key binding within VSCode.