It seems that this commit in vte is related somehow:
commit 9f8c1b88dcd880c2d9e78c93521ee755560a9275
Author: Christian Persch <c...@gnome.org>
Date: Mon Sep 30 23:00:09 2013 +0200
emulation: Add support for DEC 1007 to set the alternate scroll mode
By default, the mouse wheel sends cursor up/down keycodes in the
alternate screen. This adds an escape sequence (DEC 1007) that allows
turning this off (and on again).
For compatibility with ubuntu's ******** patched vte, also add a
(deprecated, skip) public API that has the expected name but does nothing.
Based on patches from ubuntu, and Egmont Koblinger.
https://bugzilla.gnome.org/show_bug.cgi?id=518405
https://bugzilla.gnome.org/show_bug.cgi?id=709060
** Bug watch added: GNOME Bug Tracker #709060
https://bugzilla.gnome.org/show_bug.cgi?id=709060
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https://bugs.launchpad.net/bugs/106995
Title:
gnome-terminal unconditionally interprets mouse wheel events
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