I confirm the same issue on Lubuntu 14.10 (amd64 version).

The same issue occurs for Accessories -> Byobu Terminal, which is also a
console application that should execute 'env TERM=xterm-256color byobu'
but does not; only an empty terminal shell is shown.

It looks like the underlying problem is that for console-only
applications, the execution string is not used. Are there any desktop
applications with Terminal=true that works?

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https://bugs.launchpad.net/bugs/1053234

Title:
  Htop does not display properly from the menu, but will display from
  terminal.

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