Failed to launch iTerm2
Looks like there is some problem with reading whatever iTerm2 reads as a login shell.  Try changing the preference in 'Profiles/General' to a specific command (i.e. /bin/bash) and see if that works.

Additionally, does Apple's terminal work?  could you do something like

echo $SHELL
bash


and see if bash actually exists on your machine?  Bash is quite unfussed on what login items you have, so make sure you have a minimal .bash_profile and .bashrc in your $HOME

Give it a try and let's see if we get enough info to help you.