Comment 1 for bug 64980

Not sure this is a bug. The '\177' modification was added specifically by Debian, and specifically for Debian xterms (and terms pretending to be xterms). Other xterms (such as ones shelling in) may well be using ^H for their backspace, and should probably stick with the defaults (this is my conjecture).

It might be well to contact the Debian maintainer for clarification. Please post any insights here, if you do.