Copied from the comments on MDL-25775:

http://tracker.moodle.org/browse/MDL-25775?focusedCommentId=152262&page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#comment-152262

I'm experiencing the same problem in Moodle 2.2.1, using Chrome. The culprit seems to be function resourcelib_embed_general (lib/resourcelib.php). Towards the end of the function a YUI injection is not calculating height appropriately. As a result, although <object> element has proper height=600 and width=800, it is being overriden by additional style="height: 0px;".

A quick and dirt fix was to comment the following line:
// $PAGE->requires->js_init_call('M.util.init_maximised_embed', array('resourceobject'), true);

This way, no "style" element is being added to <object> element, and the site policy now appears as expected.

http://tracker.moodle.org/browse/MDL-25775?focusedCommentId=162463&page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#comment-162463

I am experiencing this in 2.1.4, IE & Ff tested ...