OK, so there are a few steps to fixing this bug:
1. sudo apt install gnome-tweak-tool
2. Gnome Tweak Tool > Windows > Titlebar Actions > Middle-Click = Toggle
Maximize Vertically
3. Log in using Xorg ("Ubuntu") for it to work (not "Ubuntu on Wayland").
Step #3 sounds like an obvious bug. But #2 is seemingly also a bug
because it interprets the middle click anywhere on the titlebar --
clicking on the maximize button is not considered a special area.
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https://bugs.launchpad.net/bugs/1698083
Title:
Middle-click titlebar actions don't work in Wayland sessions
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