Comment # 2 on bug 1014819 from
Installed packages on the system which fails:
Hygiea:~ # rpm -qa | grep pinentry
pinentry-gtk2-0.8.3-3.3.x86_64
pinentry-0.8.3-3.3.x86_64
pinentry-qt4-0.8.3-3.3.x86_64

--gen-key works in xterm

But when I do 
 unset DISPLAY
the above error happens.

Found this during debugging remotely for another user having issues but there
the behaviour is again a bit different what I cannot reproduce.
Still reporting what I could reproduce myself.


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