These seem to format the way you are wishing. Here is a screenshot of the notebook:

I do note however that the TexForm of, say,

Nest[1 + 1/# &, "...", 7] // TeXForm

gives this

\frac{1}{\frac{1}{\frac{1}{\frac{1}{\frac{1}{\frac{1}{\frac{1}{\text{...}}+1}+1}+1}+1}+1}
   +1}+1

which formats (at least in this forum's TeX typsetting) as

$\frac{1}{\frac{1}{\frac{1}{\frac{1}{\frac{1}{\frac{1}{\frac{1}{\text{...}}+1}+1}+1}+1}+1} +1}+1$

Is this the issue that you are referring to? The Mathematica native typesetting seems to be fine. The TeX seems to be the opposite of what's desired.

My cells are in Standard Form. If I change them to TraditionalForm then they have the opposite behavior that you are noticing. That also explains the TeXForm result--presumably, and sensibly, the TEeXForm of an expression is based on the TraditionalForm version.

I only very rarely use TraditionalForm as a formatting choice for Mathematica expressions....