Same issue here, whether I'm on a phisical machine or a VM.
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https://bugs.launchpad.net/bugs/1686623
Title:
Gnome terminal window shrink on exit focus with
I came across this problem when doing a clean install of Lucid.
I had an existing /home partition which was not formatted. I'm not sure
if the installer overwrote my .bashrc, but I couldn't login to GDM after
the install was finished. I overwrote my .bashrc with the default Lucid
skeleton
