[Bug 1070605] [NEW] Konsole fails to launch in 12.10 - "Failed to change to directory '$HOME' (No such file or directory)"

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Konsole, when launched from menu or panel, fails to launch, with error
"Failed to change to directory '$HOME' (No such file or directory)".

When launched from Terminal, it starts fine.

In 12.04 it worked.

Complete removal and installation did not help.

** Affects: konsole (Ubuntu)
     Importance: Undecided
         Status: New

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Konsole fails to launch in 12.10 - "Failed to change to directory '$HOME' (No such file or directory)"
https://bugs.launchpad.net/bugs/1070605
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