Using the current distribution of Xubuntu (release 18.04, XFCE version
4.12 at the time of writing), this problem is either not fixed or has
resurfaced.

The temporary solution published here: 
https://askubuntu.com/questions/228217/xfce-4-10-panel-auto-hide-feature-stops-working-on-occasions
(xfce4-panel -r) is working for me.

Not 100% certain how to backtrack what exactly causes it, but gathering
that it has to do with full-screen applications, I can possibly name
gaming as a lead. Don't remember having had the panel failing to hide
before I installed PlayOnLinux and started playing Entropia Universe (a
CryEngine-2 based game) on it. It offers two full-screen modes called
"Regular" and "Windowed". I mostly, but not exclusively use "Windowed".
After ending it and returning to normal work, the panel now refuses to
hide. Changing its settings to "always" makes no difference.

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https://bugs.launchpad.net/bugs/1049450

Title:
  Fails trying to hide the xfce4-panel panel 1

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