I'm trying to make the height of xtermjs dynamic. I've looked around but the solutions don't seem to solve my issue. I played with CSS but the problem doesn't seem to be there. I'm also using the xterm-addon-fit.
As an example I created this sandbox to show the issue. I've added a dragging pane that has a somewhat hard to see black bar in the bottom. When I drag it, the xtermjs component doesn't resize.
In the image below, the black box with numbers (xterm) should be inside the orange box after we resize the orange box.

I've used a component to make it easier to test, but it happens if we resize the window in other ways.
What am I missing here?