Terminal.app disapproves of heavy metal and shows cut-off window title when in folder with Umlaut

Originator:kastansn
Number:rdar://FB7834710 Date Originated:2020-07-01
Status:Open Resolved:
Product:macOS Product Version:11
Classification:Bug Reproducible:Always
 
Steps to reproduce:
1. On a fresh macOS Big Sur installation with default shell settings, open Terminal.app
2. Create a new folder with a German umlaut in its name by typing „mkdir Motörhead“
3. Change into Motörhead using the „cd“ command.
4. Notice that you indeed have changed into Motörhead and are ready to rock \m/ but the window title is suggesting otherwise: sadly, it is cut off after the first umlaut.

This is a regression. Changing into Motörhead used to work in former macOS versions.

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