I created a new account and logged into GNOME on Wayland and now GNOME Terminal looked and behaved correctly and did not have the ugly drop shadow issue.
After using dconf-editor to recursively reset the configuration for /org/gnome/terminal/ this issue disappeared for me on my normal user account too. :)
I created a new account and logged into GNOME on Wayland and now GNOME Terminal looked and behaved correctly and did not have the ugly drop shadow issue.
After using dconf-editor to recursively reset the configuration for /org/gnome/ terminal/ this issue disappeared for me on my normal user account too. :)