As other commenter have remarked this is working as designed.

It is possible to completely turn off transparency which should satisfy
the original report and we can close this bug off.

Here's how to turn off transparency:

Ensure that the terminal toolbar is visible.

If you cannot see File Edit Terminal View Help at the top of your
terminal right click anywhere on the terminal and select Show Menubar.


Go to Edit menu and select Profile Preferences
Click on Transparent and set the slider to Maximum. 

This turns off transparency.

-- 
Terminals have a translucent background
https://bugs.launchpad.net/bugs/549365
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