The phrase can imply passion or even obsession when describing someone's focus on others or an activity. She is so wrapped up in her gardening, she forgets to eat.
Pro Tip 2/3
Exclusivity Error
Avoid using 'wrapped up in' to suggest casual or light interest; it implies deep involvement. He couldn't join us because he is wrapped up in writing his novel.
Pro Tip 3/3
Negative Nuance
It can carry a negative connotation indicating neglect of other responsibilities or interests. Ever since the promotion, she's been wrapped up in work and ignoring her friends.