Arch Linux

Description:
After setting the default terminal using the following commands:
gsettings set org.gnome.desktop.default-applications.terminal exec urxvt
gsettings set org.gnome.desktop.default-applications.terminal exec-arg -e
launching a terminal application from the Budgie menu (vim in my case) still opens in gnome-terminal, or doesn't open at all if the gnome-terminal package is removed.

Additional info:
* Package version tested: 10.5-1 (Community repo) and 10.5.r13.g48d1bc4b-1 (AUR)
* I have tested this on Manjaro Budgie in a VM, had the same problem.
* I have tested this with rxvt-unicode and pantheon-terminal, and the problem persists for both cases.
* I have tested the rxvt-unicode with the Nemo file manager that uses the org.cinnamon.desktop.default-applications.terminal scheme in gsettings, and the same settings (exec urxvt; exec-arg -e) is accepted there, bash scripts can be run from the graphical file manager.
* According to a Solus core team member on their forums, this problem doesn't persist on Solus with the Budgie DE, everything works as intended (have not tested myself):
https://discuss.getsol.us/d/1350-how-to-set-the-default-terminal-emulator-in-the-budgie-desktop

Steps to reproduce:
1. Install the urxvt terminal emulator
$ sudo pacman -S rxvt-unicode

2. Set the default terminal emulator and the required argument to run command-line apps from the desktop:
$ gsettings set org.gnome.desktop.default-applications.terminal exec urxvt
$ gsettings set org.gnome.desktop.default-applications.terminal exec-arg -e

3. Start a command-line application from the Budgie menu
<Budgie Menu> <vim>

Result:
the application starts either in the gnome-terminal (if installed), or doesn't start at all (if gnome-terminal is not installed)