Please see https://bugzilla.xfce.org/show_bug.cgi?id=8692 as it's the same bug (that one is for Thunar). Basically IMO Terminal.desktop should have *either* System *or* Utility as a category, not both. Regards.
I agree with this suggestion. If it is decided by maintainer to only keep one (main) category, then "System" should be the one to stay, because "System" is suggseted by FDO Menu Specfication[1] to be used together with "TerminalEmulator". Actually, "desktop-file-validate Terminal.dekstop" will print warning message when "System" is absent. [1] http://standards.freedesktop.org/menu-spec/latest/apa.html
Only system in 7cbea93.