Hi konhuynh,
From the collected command outputs, looks to me, your desktop environment at this vm is abnormal. You are using the gnome desktop, right?
Could you please share how did you install/modify your desktop environment packages? And what's Redhat7.9 distribution you are using? I prefer you to install Redhat7.9 Enterprise workstation, which has default gnome-classic desktop environment to have a try.
The following are my Redhat7.9 desktop environment output at Terminal.
[vmuser@redhat79 ~]$ env |grep DESKTOP
IMSETTINGS_INTEGRATE_DESKTOP=yes
DESKTOP_SESSION=gnome-classic
GNOME_DESKTOP_SESSION_ID=this-is-deprecated
XDG_SESSION_DESKTOP=gnome-classic
XDG_CURRENT_DESKTOP=GNOME-Classic:GNOME
