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[Martin Pitt <martin.pitt@xxxxxxxxxx>]

Please let's not do this madness in Ubuntu. Setting the initial dir
doesn't require any of this $PS1 hackery, and it's outright impossible
to inject it for any existing home dir (i. e. majority of cases).
Running the login shell executable in the desired directory is the
direct, clean, and non-hackish way.

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https://bugs.launchpad.net/bugs/1132700

Title:
  gnome-terminal requires sourcing of vte.sh login script

Status in GNOME Terminal:
  New
Status in “gnome-terminal” package in Ubuntu:
  Confirmed

Bug description:
  As of gnome-terminal 3.7.0, it is required to add the following to
  PS1 to get the usual behaviour where a new terminal opens with the
  current working directory of the terminal you activated it from.

  export PS1='\[$(__vte_ps1)\]'$PS1

  gnome-terminal devs suggest to put this in .bashrc, however since this
  basically causes a regression, it would make sense to deal with it at
  a distro level and perhaps include it in the system bash scripts or
  similar.

  The actual change was made in libvte so this may potentially affect
  any application that uses that library.

  As a side note: __vte_ps1() is provided by /etc/profile.d/vte.sh,
  which is installed by libvte, however atleast on my system this script
  is not getting sourced at login for some reason.

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