Yes, I'm seeing this problem, too. Mathworks won't touch it, as it does
seem to be a real third party issue with Emacs.
I'm having the problem with OSX 10.12 and Emacs 25.1.1, although it was
also present with my previous emacs (24.5?).
I checked the environment variables, and the only thing I see significantly
different is that emacs shell reports as TERM=dumb, while the Xquartz one
is TERM=xterm and apple's terminal is TERM=xterm-256color.
In all cases, the actual shell is /bin/bash. I'm guessing this has
something to do with how emacs is setting up the shell, but I can't figure
out what the issue is, exactly. May be time to cross post to emacs
developers.
Peter
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