This seems to be the result of some customization or third-party plugin.
Could you try the approaches below?
1) Try resetting the custom decorator from Administration >> Layouts or Browse >> Space Admin >> Layouts.
2) If the approach below do not help, try to set your Confluence Plugins on "Safe Mode" and check if the behavior persists;
Just a quick note about this bug. The issue is resolved in Confluence 5.1.3.
If you are on a version of Confluene pre 5.1.3 we have a plugin fix for this editor height issue available in our marketplace.
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