The RPM package description of vte291 says: "VTE supports [...] emulating
any terminal known to the system's terminfo database."
As of the 0.37 series, this is no longer true. It's hardwired that vte emulates xterm.
Story, rationale etc.: https://bugzilla.gnome.org/show_bug.cgi?id=728900
Thanks, fixed in http://pkgs.fedoraproject.org/cgit/vte291.git/commit/?id=01a725dfc47eab07d81d20609e0f9b42da4c1299