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The following problem occurs with Eclipse Neon. I have setted my Initial Working Directory to "Eclipse workspace", but when I open a Local Terminal, my working directory is initialized every time with "Eclipse home". After debugging, it seems that LocalLauncherDelegate searchs preferences from "org.eclipse.tm.terminal.connector.local.activator.UIPlugin" although it should search preferences from "org.eclipse.tm.terminal.view.ui.activator.UIPlugin" (according org.eclipse.tm.terminal.view.ui.preferences.PreferencePage). But perhaps I'm wrong. Many thank's for your help.
Good catch. This is fixed in both master an 4.1_neon_bugfix branch now.