$TERM only gets set for units which have Standard{Output,Error}=tty. By
default services only have a stdout/err pipe to the journal, and rc-
local.service uses journal+console which is still a pipe. So it would be
actively wrong to set $TERM there as it is not actually a terminal. (See
man systemd.exec).

You can create your own unit with Standard{Output,Error}=tty and a
setterm call, of course.

** Changed in: systemd (Ubuntu)
       Status: New => Invalid

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  $TERM is not set for /etc/rc.local

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