How to do tag wrapping in VS code?

Embedded Emmet could do the trick:

1. Select text (optional)
2. Open command palette (usually Ctrl+Shift+P)
3. Execute Emmet: Wrap with Abbreviation
4. Enter a tag div (or an abbreviation .wrapper>p)
5. Hit Enter

Command can be assigned to a keybinding.

This thing even supports passing arguments:

{
    "key": "ctrl+shift+9",
    "command": "editor.emmet.action.wrapWithAbbreviation",
    "when": "editorHasSelection",
    "args": {
        "abbreviation": "span",
    },
},

Use it like this:

• span.myCssClass
• span#myCssId
• b
• b.myCssClass

A quick search on the VSCode marketplace: https://marketplace.visualstudio.com/items/bradgashler.htmltagwrap.

1. Launch VS Code Quick Open (Ctrl+P)

2. paste ext install htmltagwrap and enter

3. select HTML

4. press Alt + W (Option + W for Mac).

As I can't comment, I'll expand on Alex's fantastic answer.

If you want the Sublime-like experience with wrapping, open up the Keyboard Shortcuts (command ⌘/Ctrl+shift+P > Preferences: Open Keyboard Shortcuts (JSON)) and add the following object:

{
    "key": "alt+w",
    "command": "editor.emmet.action.wrapWithAbbreviation",
    "when": "editorHasSelection && editorTextFocus"
}

Which will bind the Emmet wrap command to option ⌥/Alt+W when text is selected.

You can also use the UI to do this, open the Keyboard Shortcuts menu and search for "emmet wrap with abbreviation" to add the shortcut.