"New Tab with Settings - Basic" Mac Maybe a Dash?
I was able to verify your issue, initially I thought it might be there is a hidden character or an unusual type of hyphen, but it isn't I found the strings file and the original string for this menu is:

New Window with Profile - %@


Testing these options didn't work:


New Window with Profile - %@
New Window with Profile - Pro My theme is called Pro not Basic
New Window with Profile


None of these work, but as you said any other item in that menu works so this appears to be an artefact of the fact macOS generates that menu item by concatenating two strings.

There is a relatively old guide on almost exactly this issue which you could try to follow, but this appears to be a bug and should be reported to Apple: https://radar.apple.com

EDIT: Image of menu item