Just switched to budgie (from lubuntu) and encountered this issue,
specifically while trying to fix the launcher shortcut for 'launch
terminal'. After trying a number of the suggested workarounds, including
the language/region ones, I dug into gnome settings and found that:

gsettings set org.gnome.desktop.default-applications.terminal exec x
-terminal-emulator

worked for me.

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https://bugs.launchpad.net/bugs/1759462

Title:
  Keyboard shortcuts not operational on 18.04

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