Not sure this helps but I'm on 2025.2.3 and I have the Code Style set to defaults according to the below. This works quite well and certainly doesn't wrap single lines of SQL like in your example. Have you tried that already?

• Set the General settings (Editor, Code Style, SQL, General) to the defaults (Cogwheel, Reset Defaults)

• For all dialects below General, "Inherit general SQL style" is checked