$PWD from previous session is not encoded correctly

Build 2.1.4

It happens when I switch to a new tab or split the pane:

Locale: en_US.UTF-8

Directory name from $PWD (not from the pwd command):

• Before: Äpfel
• After: Äpfel (A%C3%8C%C2%88pfel)
• Before: 中文
• After: 中文 (%C3%A4%C2%B8%C2%AD%C3%A6%C2%96%C2%87)