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Hi you can wrap text in the outer shape of a path but not cut a hole in the middle.
So in the example below with two rectangles (and the smaller set to subtract in path operations) in both cases the text wraps inside the resulting outer boundary shape , but in the first example the outer shape is cut out by the small rectangle but in the second example the outer shape is just the larger rectangle
As far as I am aware this is not a change and Photoshop has never been able to so full text wrapping in the way In Design can do.
Thanks for the quick answers. Eventually I figured out that I cannot completely wrap text around an image. Pixxxel Shubser, your suggestion of hacking the limitation with a pixel line to the outside is really cool.
Your problem is 'solved' now? Or do you need further assistance?