The answer is yes, there are bubble free compasses. It seems that the trick to getting a compass to not have bubbles is to use a thermo-elastic capsule which flexes with the temperature changes.
K&R's thermo-elastic capsule is flexible, not brittle. This accomplishes two things: 1) the capsule flexes with temperature and altitude changes to keep out bubbles, and 2) the capsule doesn't develop leaking hairline cracks when you drop it (or step on it).
The Cruiser's instruments are housed in a rugged zinc body with a thermo-elastic capsule for durable bubble-free performance,
It seems like not many manufactures make these types of handheld compasses, but they do exist.