I have seen sometimes people launch a xterm from a normal terminal
But I don't understand the intention behind, does xterm inherit all the environment settings from the current terminal?
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xterm inherits (like any other process) the environment variables which are in your shell. But it sets several environment variables. That's documented in the
ENVIRONMENT section of the manual page.
By the way, xterm is considered by most to be a "normal terminal".
As for why someone might do this:
Other people will have other reasons.