Thank you for your tips and suggestions. It seems that FPSYSTEM from rtl-Sysutils is the 1:1 replacement for the old SHELL function but that made no difference to my problem. I dug out the previsious fpc version 1.9.4 from archive.debian.org which fortunately could be installed [for how long?] and hey presto: the good old xterm -e <program> runs again.
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