Ok, I've found the problem.

This was due to a setting I had enabled in "Gnome Tweak Tool": "Suspend
when laptop lid is closed" to OFF

Setting this option to OFF (the default is ON) adds an autostart link in
.config/autostart/ignore-lid-switch-tweak.desktop, which runs the
/usr/lib/gnome-tweak-tool/gnome-tweak-tool-lid-inhibitor utility, which
creates a logind inhibitor:

systemd-inhibit --list

    [...]

     Who: gnome-tweak-tool-lid-inhibitor (UID 1000/learts, PID 
22291/gnome-tweak-too)
    What: handle-lid-switch
     Why: user preference
    Mode: block
   
    [...]

"Mode: block" means that the signal is blocked and not passed to the
other parts which may be handling the lid switch, including what I
assume is the standard code handling the screen poweroff.

By toggling the option to ON, the inhibitor goes away and the screen is
turned off when I close the lid.

Therefore, I advise everyone against using the "Suspend when laptop lid is 
closed" option in gnome tweak tools. A much better way to diisable suspend on 
lid cose is to edit /etc/systemd/logind.conf
and set HandleLidSwitch=ignore.
There are also the additional options of HandleLidSwitchDocked and 
HandleLidSwitchExternalPower (this one since systemd 238) to set a different 
action to take on lid close when the laptop is connected to an external monitor 
or AC power, respectively.

-- 
You received this bug notification because you are a member of Desktop
Packages, which is subscribed to gnome-shell in Ubuntu.
https://bugs.launchpad.net/bugs/1754862

Title:
  Screen remains active on lid close

Status in gnome-shell package in Ubuntu:
  New

Bug description:
  I have a Dell XPS 13 9370 (early 2018 model) with Ubuntu 17.04
  installed. I use the Gnome on XOrg session.

  When I close the laptop lid, I can see through the small (< 1mm) hairline 
crack that the screen is still active, showing the entire desktop. This happens 
only once I am logged in to the gnome shell session, I tried closing the lid 
before logging and the screen is correctly blanked.
  --- 
  ApportVersion: 2.20.7-0ubuntu3.7
  Architecture: amd64
  CurrentDesktop: GNOME
  DisplayManager: gdm3
  DistroRelease: Ubuntu 17.10
  InstallationDate: Installed on 2018-03-01 (11 days ago)
  InstallationMedia: Ubuntu 17.10 "Artful Aardvark" - Release amd64 (20180105.1)
  Package: gnome-shell 3.26.2-0ubuntu0.1
  PackageArchitecture: amd64
  ProcVersionSignature: Ubuntu 4.13.0-36.40-generic 4.13.13
  Tags:  artful
  Uname: Linux 4.13.0-36-generic x86_64
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups: adm cdrom dip docker lpadmin plugdev sambashare sudo
  _MarkForUpload: True

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