These are both reduced participle clauses. The phrase using the past participle (wrapped) is passive. It is a shortened form of 'tortillas which have been wrapped around...'. . This means that someone has wrapped the tortillas around the filling. The phrase using the present participle (wrapping) is active. It is a shortened form of 'tortillas which are wrapping around...'. This tells us what the tortillas are "doing". I realise that it is an odd concept to say that an inanimate object is "doing" something, but it is not impossible. If you can say that the tortillas are sitting on plate, it's not unreasonable to say that they are wrapping around the filling. This structure is unusual, but still understandable.

You cannot use wrapping around in this sentence. You could use wrapping in other sentences, but NEVER in this sentence, where you have a sentence starting with the present simple: Tacos are... Unless, of course, you move over to poetry or creative writing, where you might use the active 'wrapping'. It would mean that you can see the tortillas moving; wrapping their little arms around the filling! Wrapped around is correct. It is short for tortillas that have been wrapped around a filling. Remember, people who are learning English tend to overuse the present continuous tense. Try not to use it, or its counterpart in the past - at least for a little while. Once you have mastered using other tenses, then try using the continuous tense. All the best!

Hi Alistair, Wrapping is the present participle. Eg: This is perhaps used when doing (following a recipe) or watching tacos being made. Wrapped is the past participle. Eg: This is perhaps used when the tacos have been made, a picture or menu description.