Can't debug console applications (Run in terminal & Start Debugging)

The debugger cannot handle application that runs in terminal (checked "Run in terminal" in run configuration).

What will reproduce the problem:
1. Create a simple hello world application for console ( in C++)
2. Go to Projects->Run Settings and check 'Run in terminal'
3. Start debugging

Both the debugger and the application freezes. If the "Run in terminal" is unchecked, everything works fine.

This bug makes it impossible to debug console application since they should run in terminal.
When the "Run in terminal" setting is not used, I can see the output in Application output pane, but I can't interact with the application and send any input while debugging. Also the regular (not debugging) Run doesn't stop the application at the end and doesn't show any application output.

The "Run in terminal" option is clearly needed for console apps and it's a serious bug that Qt Creator is unable to debug in this Terminal Mode.