tramp (2.1.20); VC Show history complains on "WARNING: terminal is not fully functional" for a file in git

I open a file version controlled using Git and tries to check the log of
the file (C-x v l) and the *vc-change-log* buffer turns up with this
content:

[Show 2X entries]    [Show unlimited entries]Last login: Wed Jul 18 17:31:03 2012 from 172.18.254.167
[msv <at> vmdev1.dev.resfeber.se ~]$ WARNING: terminal is not fully functional

-  (press RETURN)

The path to the file is:
/scp:vmdev1.dev:/data/jail/chewbacca_dev/www/docs/test/ean_tests/ean.pl

Annotate (C-x v g) gives a buffer that also contains:
WARNING: terminal is not fully functional

-  (press RETURN)

--bug report follows this line--

Emacs  : GNU Emacs 23.3.1 (x86_64-pc-linux-gnu, GTK+ Version 2.24.10)
 of 2012-03-25 on allspice, modified by Debian
Package: tramp (2.1.20)

current state:
==============
(setq
 tramp-current-method "scp"
 tramp-current-user nil
 tramp-current-host "vmdev1.dev"
 tramp-auto-save-directory nil
 tramp-default-method "scpc"