`xdg-open /` opens in browser when not already in terminal

I have set default file manager to ranger (xdg-mime query default inode/directory = ranger.desktop). Yet, when I am not in the terminal already, xdg-open / opens in the browser. I have checked in /usr/share/applications/ranger.desktop is Terminal=true. Setting TERM=foot (my terminal) in /etc/environment did not help, neither did linking my terminal to /bin/xterm.