When a character that extends below the baseline becomes a drop cap, the bottom of it appears to be cut off in the editor (Occurs often with capital J in some fonts). Exporting to a format like PDF shows the drop cap rendering correctly, so it seems like it’s just a minor visual bug in the program.
I’m on Windows 10, and version 7.5.2.2 of LibreOffice, and the save format is .odt
tdf#160488