It's the value of $TERM that is wrong when you're running within screen.
Screen sets TERM=screen before it invokes a shell, so something is
changing that (most likely your shell profile or rcfile, but also look
for a "setenv" command in your ~/.screenrc).
I'll go ahead and close this bug out, as it appears to be a problem with
your configuration, rather than a bug with GNU Screen (or Ubuntu).
Please re-open if you find this isn't the case. If you have trouble
finding where TERM is being set, or how best to deal with it, please
feel free to contact me directly. If you use IRC, I'm frequently at
#screen on at freenode.net.
** Changed in: screen (Ubuntu)
Status: Incomplete => Invalid
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mc doesn't properly appears in screen
https://bugs.launchpad.net/bugs/320240
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