That's a veeerrryyy longstanding issue...
checking responsive height in the sceneinspector will force a hypedoc to fill a absolute given space, but if there is no given space it'll fill Zero (0) height ...
there are a couple of solutions in the forum regarding the expected results for a responsive embed.
one of them expecting a proportional resizing in aspect ratio to the current layout: Creating a Flexible Tumult Hype Document within a DIV with no set 'height'
please be sure to not place the script in head, but in an initial sceneload-event-function when using an*oam-embed!
when embedding as iFrame you'll need a method that handles communication from the hypedoc to the parent to resize the iFrame accordingly ...