I am still seeing this issue on vivid:

$ dpkg -l libvte-2.90-9
Desired=Unknown/Install/Remove/Purge/Hold
| Status=Not/Inst/Conf-files/Unpacked/halF-conf/Half-inst/trig-aWait/Trig-pend
|/ Err?=(none)/Reinst-required (Status,Err: uppercase=bad)
||/ Name                   Version          Architecture     Description
+++-======================-================-================-==================================================
ii  libvte-2.90-9          1:0.36.3-1ubuntu amd64            Terminal emulator 
widget for GTK+ 3.0 - runtime fi

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https://bugs.launchpad.net/bugs/298385

Title:
  Reflow terminal contents when resizing the window

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