You can call it Vest or Poncho instead of “Wrap”, but it’s definitely a layer piece, that would be a beautiful and playful addition to your look.
You can make the side seams as you wish, or just tuck the panels underarms, or tuck them as the sample suggest, at the bottom, embellishing with decorative buttons. It all depends on your type of figure and your preferences!

Suitable for advanced beginners, this pattern is worked in very simple Lace stitch with some Garter stitch edging. Construction is not complicated as well: two rectangles connected at the shoulders.
Front neckline is shaped with 8 short rows, and this section is the most “difficult”, the rest of design is very simple.
But you certainly could modify it, working two identical rectangles!