Your worksheet did not place the Sheet 2 and Sheet 3 into a Horizontal Object. I moved both 2 and 3 to a Horizontal Object and then cleared the Fixed Height attirbute of each view. The attached is the outcome.
also note that a title will persist on a dashboard view even when there is no data in the view. If you want the sheet to completely disappear, then no title should be present.
There is an excellent article written on Joshua Milligan's site that covers advanced cases of using the disappearing sheet trick. I highly recommend reviewing this article: Sheet Selection on Steroids – VizPainter
I hope this helps,
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