Comment 2 for bug 1089438

I have found the solution after a bit of digging around.
For some reason, it is considering itself something other than XDG_CURRENT_DESKTOP - hence trying to invoke gnome-desktop-item-edit.
However, it is a command related to gnome-panel. So I changed the command to exo-desktop-item-edit like this:

if os.getenv("XDG_CURRENT_DESKTOP") == "XFCE":
            process = subprocess.Popen(['exo-desktop-item-edit', file_path], env=os.environ)
        else:
            process = subprocess.Popen(['exo-desktop-item-edit', file_path], env=os.environ)
        GObject.timeout_add(100, self.waitForNewMenuProcess, process, parent.get_menu_id(), file_path)

This is to be done for both new menu and new item function. The file is at

/usr/share/alacarte/Alacarte/MainWindow.py

And everything started working in alacarte. I have also attached the changed MainWindow.py file as a patch with this post.

Thank you.