I've just noticed that Debian carries a patch for reading the working directory from /proc if OSC 7 was not in use. This patch doesn't have the "let's look for $PWD in the environment" logic that was supposed to fix this bug.
See https://bugs.debian.org/cgi-bin/bugreport.cgi?bug=712628 ** Bug watch added: Debian Bug tracker #712628 https://bugs.debian.org/cgi-bin/bugreport.cgi?bug=712628 -- You received this bug notification because you are a member of Desktop Packages, which is subscribed to gnome-terminal in Ubuntu. https://bugs.launchpad.net/bugs/263637 Title: Gnome-terminal follows symbolic links instead of staying in the current directory when opening a new tab Status in GNOME Terminal: Fix Released Status in gnome-terminal package in Ubuntu: Triaged Bug description: Binary package hint: gnome-terminal 1) cd /tmp 2) mkdir -p A/AA 3) mkdir B 4) cd B 5) ln -s ../A/AA 6) cd AA The current directory is /tmp/B/AA. Open a new tab, you're now in /tmp/A/AA. To manage notifications about this bug go to: https://bugs.launchpad.net/gnome-terminal/+bug/263637/+subscriptions -- Mailing list: https://launchpad.net/~desktop-packages Post to : desktop-packages@lists.launchpad.net Unsubscribe : https://launchpad.net/~desktop-packages More help : https://help.launchpad.net/ListHelp
