I can also confirm it's a regression - on two computers with xfwm 4.10, having a fullscreen window (be it a term or a firefox window), alt-tabbing to another window correctly brings it to the top, showing the window on top of the fullscreen one (and the xfce panel, if the said window is not fullscreen too)
I can also confirm it's a regression - on two computers with xfwm 4.10, having a fullscreen window (be it a term or a firefox window), alt-tabbing to another window correctly brings it to the top, showing the window on top of the fullscreen one (and the xfce panel, if the said window is not fullscreen too)