How to reproduce: 1) Open a normal xfce4-terminal 2) Run xfce4-terminal --dropdown inside the first terminal 3) On dropdown terminal, go into the settings and check the option "always on top" 3) Run xfce4-terminal --dropdown again inside the first terminal At this point the dropdown terminal should hide, but nothing happens. Same if you put the command in a keyboard shortcut and the dropdown terminal is unfocused.
Thank you for the report! It revealed a number of issues in drop-down window code. Your issue should be resolved by recent git commits (https://git.xfce.org/apps/xfce4-terminal/commit/?id=7e32c03baa3d274eeeadbe5396393f6a687d3a8e is the latest). Now, if the drop-down window is inactive (unfocused), running `xfce4-terminal --drop-down` or pressing the shortcut will make it active; and running the command again while the window is active (focused) will hide the window. This behavior depends on the "use shortcut to focus window" setting - if it's disabled, the shortcut will hide the window instead of focusing it.