I found the root cause. Unity uses legacy keygrabber code depending on
xdg env variable DESKTOP_SESSION. But since artful DESKTOP_SESSION is
"unity" and not "ubuntu".

The fix is in unity7-desktop ppa.

https://code.launchpad.net/~unity7maintainers/+archive/ubuntu/unity7-desktop


In 18.10, add the ppa (ppa:unity7maintainers/unity7-desktop)and upgrade 
unity-settings-daemon and libunity-settings-daemon. 

Now custom shortcuts works as expected.

Note: The ppa also the fix for sharing panel.

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https://bugs.launchpad.net/bugs/1755106

Title:
  /org/gnome/settings-daemon/plugins/media-keys/custom-keybindings/
  fails to load

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