In iTerm2 through 3.6.9, displaying a .txt file can cause code execution via DCS 2000p and OSC 135 data, if the working directory contains a malicious file whose name is valid output from the conductor encoding path, such as a pathname with an initial ace/c+ substring, aka "hypothetical in-band signaling abuse." This occurs because iTerm2 accepts the SSH conductor protocol from terminal output that does not originate from a legitimate conductor session.
An issue was discovered in iTerm2 3.5.x before 3.5.2. Unfiltered use of an escape sequence to report a window title, in combination with the built-in tmux integration feature (enabled by default), allows an attacker to inject arbitrary code into the terminal, a different vulnerability than CVE-2024-38395.
In iTerm2 before 3.5.2, the "Terminal may report window title" setting is not honored, and thus remote code execution might occur but "is not trivially exploitable."