I found a workaround, 

edit ~/.xsessionrc

add:
PATH=/home/username/bin:/usr/local/bin:/usr/bin:/bin:/usr/local/games:/usr/games

go to ~/bin
ln -s `which alacarte` mozo

relogin the graphical session, and the right-click the menu button and
choose 'Edit menus' should now work.

(note: editing ~/.profile to update PATH does not work for this workaround)

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