I'm not sure. I don't have a copy of 3.7 to test with. I imagine it would: my tag just expands to <span style="float:{option}">{param}</span>. Any inline-level elements within it should float properly.
Block-level elements probably would too but the HTML would be invalid. I'm tempted to call that a limitation of the vBcode system since you can cause the same issue with built-in tags too.
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