Terminal does not start on Remote Desktop; how to fix it?

Try starting the terminal manually, e.g. from xterm and see what the output is.

Press Alt + F2 and then enter xterm to get an xterm.

There, simply type gnome-terminal to try to start the terminal.

I had a similar problem after editing the file /etc/default/locale.

The solution for me was changing the locale in /etc/default/locale back to the defaultc contents of that file to:

LANG="en_US.UTF-8"
LANGUAGE="en_US"

As described in this answer.

See if there is anything in your .bashrc file that shouldn't be there. That could make the terminal not work. It's a script that runs every time you launch the terminal, and when you log in with ssh a similar file may be executed on the remote machine.

There should be an unmodified default system version of .bashrc in /etc/skel/.bashrc that you can compare with the one in your home directory (~/.bashrc) to see what changes have been made, if any, to the local file.