On several occasions the useful feature of opening the current folder in a terminal session from File Manager by pressing F4 had stopped working. This problem can appear either by displaying an error similar to the screen shot above or no error is displayed and nothing happens, the terminal session does not start.
The resolution is to start File Manager, from the top menu select Edit, then Preferences and finally select Advanced.
In the Terminal emulator field type the following:
Click close and retry pressing F4 from File Manager. The terminal will start and be in the same directory as File Manager.