Description of problem: The use of "Path=$HOME" in fedora-xterm.desktop breaks starting xterm from gnome-shell, gnome-shell says: "cannot change directory to $HOME", and does not start xterm The use of environment variables in .desktop files is not mentioned in the spec for .desktop files anywhere: http://standards.freedesktop.org/desktop-entry-spec/latest/index.html So that this does not work is not surprising, please drop this line from the xterms desktop file
This change was reverted and the update was pulled from testing, please downgrade to the previous release. I'm preparing a new update, this should fix the problem for users which got the update from the testing repository.