Replicating the error:
I am using iTerm2 on Macbook (OS X Yosemite)
I ssh into a remote instance and tried to run the
clearcommand and this error is shown:'xterm-new': unknown terminal type.
Not only for the
clearcommand but the same error is displayed for several other commands and the command does not execute as expected.The error occurs only when I use iTerm2 and not when I use the default Mac Terminal. So I am guessing this problem has something to do with iTerm2 and not the virtual machine.
How can I solve this problem with iTerm2?
As mikyra pointed out in the comments above, setting the environment variable TERM=xterm-256color solves the problem.
To summarize:
sshinto remote machine and run the commands you like. The same xterm-new error should not occur now.