I am posting here in the hope someone invloved in xfce might see it.
The issue is the same as what is reported here in 2017:
When I try the option "Open terminal here" in a folder, it only works if the whole path has no spaces or other uncommon characters.
- It is also true for any actions defined in the "Custom actions" window.
- Quoting the
%fas"%f"in the "Custom actions" window doesn't work either, as posted/commented in
Launch xterm to current directory through thunar
exo-open --working-directory %f --launch TerminalEmulator. With the package xfce4-settings installed, when the directory namedtest dir(with space in between the words "test" and "dir") is right clicked and "Open terminal here" is activated from the context menu, the terminal application opens with/home/user/test diras the output frompwd. It is likely some of the packages are outdated on your system (eg. you are using Debian stable or a similar distro).