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On further examination it would appear that function handling in general is inconsistent. DATEADD breaks after it's commas regardless of the setting of "commas first". CONVERT does not break at commas.
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Thanks for your post!
I have logged a support ticket for you. -
I would like to add to this. It seems the wrapping is not respected for IF EXISTS ( SUBQUERY TO BE WRAPPED ) it still formats it the same as any other query.
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Interestingly it is breaking on arithmetic operators in the THEN and ELSE clauses but not the comparison operator in the boolean expression.
I'd also expect it's closing parenthesis to follow the same rules as other functions. In fact I'd expect it to follow exactly the same formatting rules as any other function.