Ah, after testing this further the problem was really a corrupted
config. Running rm -r ~/.config/vlc seemed to fix this problem for all
versions of vlc.
** Changed in: xfce4-panel (Ubuntu)
Status: Confirmed => Invalid
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https://bugs.launchpad.net/bugs/1005175
Title:
XFCE panel don't hide when VLC in fullsceen mode
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