I had the same problem. I fixed it by selecting, in the same preference pane you show, "login shell" instead of "Command: login -fp $MYUSERNAME" (in the screenshot, $MYUSERNAME is lobatt). Which seems a bug, since that command is a setting I got by default, somehow (like you, I guess), for whatever reason*. Hence, the "Working Directory" setting (henceforth WD) is broken out of the box. Moreover, it's *silently* broken: I don't see how WD should work if I have an arbitrary command (heck, who said it should be a shell), but then iTerm2 should *tell me* that the settings aren't compatible. iTerm2 could:
- give a validation error *telling* me that those two settings are incompatible. But that's not standard (except on web forms)
- disable WD when using custom commands. That's bad though, because how do I *discover* how to re-enable WD? Maybe WD should be moved to *under* the Login shell. Here's a mockup of the dialog in text form:
Command:
( ) Command: [........]
(x) Login shell
Working Directory:
( ) Home directory
( ) ... /* Other WD options */
*I'm not on a fresh installation and I used iTerm before iTerm2, but that does not make the bug invalid.
Cheers,