Confirming that this issue does occur with Ubuntu 18.04.1, i7 3770, with
AMD Radeon RX 480, using AMDGPU. I'm also using the kernel ppa 4.17 from
June 4th, so I can keep AMDGPU DC enabled and use my primary monitor's
DVI-D dual link connection to support 120Hz refresh rate.

I can also confirm that unchecking "Use transparency from system theme",
checking "Use transparent background", and re-checking "Use transparency
from system theme", results in a stable background. Perhaps "Use
transparent background" should check itself if the system theme employs
transparency?

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to gnome-terminal in Ubuntu.
https://bugs.launchpad.net/bugs/1726262

Title:
  17.10 - flickering overlay patterns in gnome-terminal

Status in gnome-terminal package in Ubuntu:
  Confirmed

Bug description:
  Clean install of Ubuntu 17.10.

  For gnome-terminal select color-scheme "black on light yellow".

  Overlay partly with e.g. Chrome (Browser) or Geany (editor). Then the
  border shadow of the e.g. Geany produces flickering extended shadows
  in the gnome-terminal. Foto with the extended shadows is attached.

  This bug was introduced with 17.10. This flickering didn't appear in
  17.04, 16.10, 16.04...

  Working as a developer with several open terminal windows on the
  desktop, this produces a disturbing desktop environment and mitigated
  by covering not used terminal windows complete with other apps.

  Haven't reproduced with other apps than gnome-terminal.

  Hardware
  Lenovo Thinkpad e330, cpu : Intel(R) Core(TM) i5-3210M CPU @ 2.50GHz
  gpu Builtin : HD 4000

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