Problem A:
~/.inputrc was the culprit in GDB 7.7 because of:
set editing-mode vi
set keymap vi
If I remove those lines it works.
This seems to be mentioned at in the following bug report: https://sourceware.org/bugzilla/show_bug.cgi?id=15163
I have requested a workaround at https://sourceware.org/ml/gdb/2015-06/msg00009.html and Andrew Burgess replied that he had just submitted a well received patch to add:
tui enable
tui disable
so in future versions we should have commands as an alternative to the shortcuts.
But then I saw the light and moved from TUI to GDB Dashboard: https://github.com/cyrus-and/gdb-dashboard which is simply more powerful and less buggy. See also: How to highlight and color gdb output during interactive debugging?