Debugged application fails to start and debugger hangs

I have created a new plain C++ project, which is configured to "Run in Terminal".

Clicking on the debug button I get the following output in "Application Output" Pane:
Debugging starts

And this output in the terminal I started Qt Creator from:
Warning: locale not supported by C library, locale unchanged
/usr/bin/xterm: Error 32, errno 2: No such file or directory
Reason: get_pty: not enough ptys

This is not unexpected in my current setup

What is unexpected is that Qt Creator is showing a progress bar "Launching Debugger" and does not notice that the application failed to start up.

The stop button in the debugger UI is greyed out.

The stop button in the Application Output Pane is active and works, returning the debugger to a defined state.

Attached you will find the debug log.