It seems that if you create a terminal window by typing CTRL+ALT+T everything 
is fine.
If you create one by right-clicking on the background and selecting 'Open 
terminal' the height changes.

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https://bugs.launchpad.net/bugs/1731489

Title:
  Extending a gnome terminal window to the right increases its height

Status in gnome-terminal package in Ubuntu:
  New

Bug description:
  I've just installed Ubuntu 17.10.

  If I 'grab' the right border of a gnome terminal window in order to resize it 
(to unwrap long lines) the height of the window changes as well.
  This is not desirable.

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https://bugs.launchpad.net/ubuntu/+source/gnome-terminal/+bug/1731489/+subscriptions

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