Just as the title says, I have a mini icon when I open Terminal:
I would like to hide it if at all possible.
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To _literally_ answer your question of "why": Because Ubuntu accidentally broke it with a custom patch that they applied last minute, during freeze period, thus not receiving proper testing; and unforturtunately don't care enough to fix it. For a practically more useful answer, see the other linked questions. – egmont Jan 04 '19 at 10:58