I noticed this from a very first installation of Virtualbox. When I hit start to boot iso, it always starts with a very small window and I have to manually make it bigger. Even if I make it bigger, it will change size a few times while booting to a freshly installed OS.
When I hit full screen I just see transparent windows (with my wallpaper) and nothing else. I can resize that thing - as you can see in a picture.
And even after installing guest additions I can't get to work it in full screen.
What am I doing wrong here?
You see this part from your screenshot
Make it like this:
This issue is a known issue.
As @bogdancovaciu mention - it will occur when you do not set the correct display type.
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