Sometimes when I'm working in Terminal, it auto-maximizes the window. It is frustrating because I'm referring to another window that gets obscured when the auto-maximize occurs. What can I do to disable this functionality?

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I know of no way to do this in Terminal.app, but iTerm offers this feature under iTerm -> Preferences... -> Profiles -> Window -> Disable session-initiated window resizing. It has a great deal of other capabilities over Terminal.app, as well.

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