It is a server install with IIRC the ubuntu-desktop package.
So I think it is Wayland - certainly rather different from the previous 
versions.

I can also confirm that setting PS1 to "$ " stops the size change.
So it is related to the title updates being done by the shell every time it 
sees SIGWINCH and then redisplays the prompt.

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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.

To manage notifications about this bug go to:
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