Ah! I see why we have a discrepancy. I'm sorry, I was not explicit
enough with my repro steps. Following your steps, it works for me as
well.

What I am doing is the following:
- ctrl+alt+T
- $ gedit
- first line is highlighted by default
- *** open the "Ln1, Col 1" menu in the bottom right corner ***
- uncheck "Highlight current line"
- first line is NOT highlighted now
- close gedit
- in the terminal: $ gedit 
- first line is highlighted again

So, it seems that the quick menu in the bottom right corner is the one
that's not working. I do not go into the "Preferences" dialog at all.

If this doesn't help, I can do a video of the problem.

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https://bugs.launchpad.net/bugs/1880806

Title:
  Gedit unable to save preferences on 20.04

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