My only problem using git and a text editor is deciding whether I want hard or soft wraps. Vim handles hard wraps better IMO and you can change the git diff engine to something like difft, which makes it much more bearable than the default for hard wrap prose.
But softwrap definitely has its advantages: no hard line breaks makes copying the text into other mediums easier, git diffs show only which paragraphs you edited and not a bunch of line diff noise no matter which engine you use. Only problem is it breaks my yy, dd, cc muscle memory, as AFAIK you can't force those to work on virtual (vs logical) lines.
I use VS Code soft-wrapping, and `git diff --word-diff` does all I need, though there probably are better methods.
The annoyances of using "soft wraps" with various kinds of tools is one of the maddening irritations of our software landscape. Inserting non-semantic newlines in content just to make things fit the screen is insane.
If you use Markdown, then it almost doesn't matter because your converted output won't have a line break until you insert a single newline.