"Unable to fork!" error on launch and subsequent new window/tabs on macOS beta 3

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Detailed steps to reproduce the problem:

  1. Launch app on macOS version specified above.
  2. That’s it.
  3. Launch new tab / window to reproduce every time.

What happened:

Error dialog (see screenshot): "Unable to fork!" "iTerm cannot launch the program for this session."

What should have happened:

A session should have launched.

My shell is zsh, in case that matters.Screen_Shot_2016-08-02_at_10.44.24