To my mind it is by design or misfeature. The sense of transparency is to show the respective part of Desktop background (wallpaper) as a background for terminal. Not more.
-- Transparency in terminal window doesn't work properly https://bugs.launchpad.net/bugs/97123 You received this bug notification because you are a member of Ubuntu Bugs, which is the bug contact for Ubuntu. -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs