UserAgent: Mozilla/5.0 (Windows NT 6.1; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.100 Safari/537.36

Steps to reproduce the problem:
1. http://jsfiddle.net/absLe39c/45/
2. The blue area div at the very bottom of the fiddle (linked above) under the table in an inline-block div that is overflowing should be counted towards the inline-block div's height and affect its parent height as well (div.diag) - unless specs say it shouldn't 
3. Pink background area should be behind and around the blue background area.

What is the expected behavior?
What Firefox does.

What went wrong?
Inline block elements not adjusting in height as they should?

Did this work before? Yes Not sure

Does this work in other browsers? Yes

Chrome version: 69.0.3497.100  Channel: stable
OS Version: 6.1 (Windows 7, Windows Server 2008 R2)
Flash Version: 

I don't recall seeing this issue until version 68 or so.