In Guake Preferences > Shell, I select /usr/bin/zsh as the "Default interpreter."
In Guake Preferences > Main Window, I have the following options set:

The terminal opens and shows the correct directory initially (my $HOME dir), but when I move around, the title is not updated.

Also, opening a new tab shows a tab title of Terminal.
This works as expected when I use /bin/bash as the "Default interpreter."
I'm using Ubuntu 20.04.2
$ guake --support
Guake Version: 3.7.1
Vte Version: 0.60.3
Vte Runtime Version: 0.60.3
GTK+ Version: 3.24.20
GDK Backend: GdkX11.X11Display
Desktop Session: xubuntu
Display: :0.0
RGBA visual: True
Composited: True
- Monitor: 0 - Virtual1
- Geometry: 1264 x 925 at 0, 0
- Size: 334 x 245 mm²
- Primary: True
- Refresh rate: 60.00 Hz
- Subpixel layout: horizontal-rgb
In Guake Preferences > Shell, I select

/usr/bin/zshas the "Default interpreter."In Guake Preferences > Main Window, I have the following options set:
The terminal opens and shows the correct directory initially (my $HOME dir), but when I move around, the title is not updated.

Also, opening a new tab shows a tab title of
Terminal.This works as expected when I use
/bin/bashas the "Default interpreter."I'm using Ubuntu 20.04.2
$ guake --support
Guake Version: 3.7.1
Vte Version: 0.60.3
Vte Runtime Version: 0.60.3
GTK+ Version: 3.24.20
GDK Backend: GdkX11.X11Display
Desktop Session: xubuntu
Display: :0.0
RGBA visual: True
Composited: True