The option "Move to monitor with pointer" does not work for drop-down terminal in 0.8.5.1 version. Works fine in 0.8.4. The https://github.com/f2404/xfce4-terminal3/commit/73f99ca1c1c79c57cbadcf9a8f87435296a99f11 seems to fix the problem.
Fixed in master and will be present in next release. *** This bug has been marked as a duplicate of bug 13666 ***