It’s never appeared when multiple comonents are selected, or rather, it never should have been an option when multiple components are selected.
As a hypothetical, how would we position multiple components within a coordinate container if you had multiple selected and then selected the wrap option? We determined this use-case was impossible because the expectation was most likely something like “wrap these multiple components in a coordinate container while maintaining their relative spacing, but position the upper-left-most component at 0,0 of the new container”. So we settled on allowing for only a single component to be wrapped, and then you can copy/paste components into the new container as needed.