Terminal on Mac won't launch a shell - stuck on login: incorrect
What worked for me was:


Completely close all terminal windows.
Open Finder from the Dock.
Press Command+Shift+G and type in ~/Library/Preferences/, then press enter.
Locate the file called com.apple.Terminal.plist and rename it (using highlight and then single click) to com.apple.Terminal.OLD.plist.
Re-open the terminal app.


Note that the file might also show up in Finder as com.apple.Terminal if you do not show extensions by default.