Many thanks! After removing /usr/local/bin/tracd it now works perfectly.
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trac does not work
https://bugs.launchpad.net/bugs/578174
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That error is happening because you installed Trac 0.11.5 manually (not
using debs). Note the /usr/local prefix for tracd. You should remove
/usr/local/bin/tracd, or fully path to the tracd installed by the deb,
so it will use 0.11.7-1 you just upgraded to.
The tracd installed by the deb is /usr
