[Bug] DiffEditor: Toggling `renderSideBySide` breaks `wordWrap` unrecoverably

[Prinzhorn]

Reproducible in vscode.dev or in VS Code Desktop?

• [X] Not reproducible in vscode.dev or VS Code Desktop

(I don't know, haven't used either and I don't know how to get a diff editor)

Reproducible in the monaco editor playground?

• [ ] Not reproducible in the monaco editor playground

Monaco Editor Playground Code

var originalModel = monaco.editor.createModel(
	'This line is removed on the right.\njust some text\nabcd\nefgh\nSome more text\nThis line is hella loooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooong',
	'text/plain'
);
var modifiedModel = monaco.editor.createModel(
	'just some text\nabcz\nzzzzefgh\nSome more text.\nThis line is removed on the left.',
	'text/plain'
);

var diffEditor = monaco.editor.createDiffEditor(document.getElementById('container'), {
	wordWrap: 'on'
});

diffEditor.setModel({
	original: originalModel,
	modified: modifiedModel
});

setTimeout(() => {
    diffEditor.updateOptions({
        renderSideBySide: false,
        wordWrap: 'on'
    });

    setTimeout(() => {
        diffEditor.updateOptions({
            renderSideBySide: true,
            wordWrap: 'on'
        });
    }, 1000);
}, 1000);

Reproduction Steps

1. Paste the above into playground
2. Hit "run"
3. Wait a few seconds

Actual (Problematic) Behavior

After toggling renderSideBySide wordWrap unrecoverably becomes broken (disabled) and cannot be enabled again.

Expected Behavior

wordWrap should work at all times

Additional Context

No response

Playground Link

https://microsoft.github.io/monaco-editor/playground.html?source=v0.36.1#XQAAAAK8AwAAAAAAAABBqQkHQ5NjdMjwa-jY7SIQ9S7DNlzs5W-mwj0fe1ZCDRFc9ws9XQE0SJE1jc2VKxhaLFIw9vEWSxW3yscw4rxF7Xzf4wOPUi0R0mEihWCV4AhRfW6uUIEjM3Y7DbLylIr1uDEh-48Vup1lSNeKklvi0xT6EWWHG4Pn4qydwOKAaH844crdRB4cWQDJKZ6Cv2smc5zTiruEj6CZzg3yjQ5CxHbDQ5dtdfQ2OyiOr_aOYEOgIpFlmrCu0Xkv5ayd93zRlI9OSf9RGbwAkROL0e6Vm9y7wIIjqHpMbH6mqnrYPGinsIZPZJ56HOjvlglRdTn537prNNx0HCPsyZnhzHD8bsRKRBQQtzu8UZ4mWsfWjmy6_W6nUrUnER_--xgBLT3f_aQ_Z31gwGrP_aIYLrx900M3Eecz1DzYKJL0mROQj44NrvOtKiHD7DDXRuuDSTEZVUOl7peWbAeu8jWBRFOjqS3ti0c_kThiYwprFsGGM_0qRjHz8Xc1yW0hLxG46zWjbJ9tZKYTONH_MMaj0-VG4-8NyoqV_od2NA

[Prinzhorn]

Bisected it using the new playground, it broke somewhere here (v0.33.0-dev.20220222) https://github.com/microsoft/vscode/compare/a0da9978b10ae0b9307c7f545b50a8500efff7eb...34cef6b03c744c2de41fedd8ef70f4ccb8ea7b60

This commit screams "it was me" @alexdima https://github.com/microsoft/vscode/commit/2ecb5c0b8f5a24b0310c34e90607540e565c7fee

[WayneGongCN]

same issue