Do not wrap a context receiver in a function parameter type reference

documentation/release-latest/docs/rules/standard.md

@@ -4343,9 +4343,9 @@ Suppress or disable rule (1)
     ktlint_standard_condition-wrapping = disabled
     ```
 
-### Content receiver wrapping
+### Context receiver wrapping
 
-Wraps the content receiver list to a separate line regardless of maximum line length. If the maximum line length is configured and is exceeded, wrap the context receivers and if needed its projection types to separate lines.
+Wraps the context receiver list to a separate line regardless of maximum line length. If the maximum line length is configured and is exceeded, wrap the context receivers and if needed its projection types to separate lines.
 
 === "[:material-heart:](#) Ktlint"
 

documentation/snapshot/docs/rules/standard.md

@@ -4343,9 +4343,9 @@ Suppress or disable rule (1)
     ktlint_standard_condition-wrapping = disabled
     ```
 
-### Content receiver wrapping
+### Context receiver wrapping
 
-Wraps the content receiver list to a separate line regardless of maximum line length. If the maximum line length is configured and is exceeded, wrap the context receivers and if needed its projection types to separate lines.
+Wraps the context receiver list of a function to a separate line regardless of maximum line length. If the maximum line length is configured and is exceeded, wrap the context receivers and if needed its projection types to separate lines.
 
 === "[:material-heart:](#) Ktlint"
 

ktlint-ruleset-standard/src/main/kotlin/com/pinterest/ktlint/ruleset/standard/rules/ContextReceiverWrappingRule.kt

@@ -3,10 +3,15 @@ package com.pinterest.ktlint.ruleset.standard.rules
 import com.pinterest.ktlint.rule.engine.core.api.AutocorrectDecision
 import com.pinterest.ktlint.rule.engine.core.api.ElementType.CONTEXT_RECEIVER
 import com.pinterest.ktlint.rule.engine.core.api.ElementType.CONTEXT_RECEIVER_LIST
+import com.pinterest.ktlint.rule.engine.core.api.ElementType.FUN
+import com.pinterest.ktlint.rule.engine.core.api.ElementType.FUNCTION_TYPE
 import com.pinterest.ktlint.rule.engine.core.api.ElementType.GT
 import com.pinterest.ktlint.rule.engine.core.api.ElementType.RPAR
 import com.pinterest.ktlint.rule.engine.core.api.ElementType.TYPE_ARGUMENT_LIST
 import com.pinterest.ktlint.rule.engine.core.api.ElementType.TYPE_PROJECTION
+import com.pinterest.ktlint.rule.engine.core.api.ElementType.TYPE_REFERENCE
+import com.pinterest.ktlint.rule.engine.core.api.ElementType.VALUE_PARAMETER
+import com.pinterest.ktlint.rule.engine.core.api.ElementType.VALUE_PARAMETER_LIST
 import com.pinterest.ktlint.rule.engine.core.api.IndentConfig
 import com.pinterest.ktlint.rule.engine.core.api.IndentConfig.Companion.DEFAULT_INDENT_CONFIG
 import com.pinterest.ktlint.rule.engine.core.api.RuleId
@@ -80,10 +85,11 @@ public class ContextReceiverWrappingRule :
         node: ASTNode,
         emit: (offset: Int, errorMessage: String, canBeAutoCorrected: Boolean) -> AutocorrectDecision,
     ) {
-        // Context receiver must be followed by new line or comment
+        // Context receiver must be followed by new line or comment unless it is a type reference of a parameter
         node
-            .lastChildLeafOrSelf()
-            .nextLeaf { !it.isWhiteSpaceWithoutNewline() && !it.isPartOfComment() }
+            .takeUnless { it.isTypeReferenceParameterInFunction() }
+            ?.lastChildLeafOrSelf()
+            ?.nextLeaf { !it.isWhiteSpaceWithoutNewline() && !it.isPartOfComment() }
             ?.takeIf { !it.isWhiteSpaceWithNewline() }
             ?.let { nodeAfterContextReceiver ->
                 emit(nodeAfterContextReceiver.startOffset, "Expected a newline after the context receiver", true)
@@ -126,6 +132,20 @@ public class ContextReceiverWrappingRule :
         }
     }
 
+    private fun ASTNode.isTypeReferenceParameterInFunction() =
+        takeIf { it.elementType == CONTEXT_RECEIVER_LIST }
+            ?.treeParent
+            ?.takeIf { it.elementType == FUNCTION_TYPE }
+            ?.treeParent
+            ?.takeIf { it.elementType == TYPE_REFERENCE }
+            ?.treeParent
+            ?.takeIf { it.elementType == VALUE_PARAMETER }
+            ?.treeParent
+            ?.takeIf { it.elementType == VALUE_PARAMETER_LIST }
+            ?.treeParent
+            ?.let { it.elementType == FUN }
+            ?: false
+
     private fun visitContextReceiverTypeArgumentList(
         node: ASTNode,
         emit: (offset: Int, errorMessage: String, canBeAutoCorrected: Boolean) -> AutocorrectDecision,

ktlint-ruleset-standard/src/test/kotlin/com/pinterest/ktlint/ruleset/standard/rules/ContextReceiverWrappingRuleTest.kt

@@ -199,4 +199,16 @@ class ContextReceiverWrappingRuleTest {
                 LintViolation(2, 36, "Newline expected before closing parenthesis as max line length is violated"),
             ).isFormattedAs(formattedCode)
     }
+
+    @Test
+    fun `Issue 2854 - Given a function parameter with a context receiver then do not wrap after the context receiver`() {
+        val code =
+            """
+            fun bar1(foo: context(Foo) () -> Unit = { foobar() }) {}
+            fun bar2(
+                foo: context(Foo) () -> Unit = { foobar() }
+            ) {}
+            """.trimIndent()
+        contextReceiverWrappingRuleAssertThat(code).hasNoLintViolations()
+    }
 }