Terminal transparency is not directly a driver feature. It's implemented
in the app and the compositor via OpenGL. And if OpenGL or the driver
was broken in this area then a lot more than Terminal transparency would
be broken...
If only the Terminal is affected then I think it would be bug 561370.
Also can you provide a screenshot?
** Package changed: xorg (Ubuntu) => ubuntu
** Changed in: ubuntu
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/2071535
Title:
The driver doesn't support transparency
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