Hi,
As per my understanding, you are trying to resize the local VM window dynamically.
Are you using the enhanced mode or basic mode?
Could you reconnect to the VM if you close the windows and connect again?
Please check if this link helps
https://github.com/neutrinolabs/xrdp/issues/1260
As your issue is Linux related It's recommended to turn to the Linux VM on Hyper V forum for better help:
https://social.technet.microsoft.com/Forums/en-US/home?forum=linuxintegrationservices
Best Regards,
Ian