SHELL

command separate words into lines

Just use tr command for this purpose:
tr -s '[[:punct:][:space:]]' '
'
Example for
cat file.txt | tr -s '[[:punct:][:space:]]' '
'

separate words in lines

Just use tr command for separating words output into separate lines:
tr -s '[[:punct:][:space:]]' '
'
Example for
cat file.txt | tr -s '[[:punct:][:space:]]' '
'