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What is the default application for opening .desktop file on Ubuntu 20.04 as originally intended? When I double-click, for example, firefox.desktop on /usr/share/applications, it opens as a text file on gedit.

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I've found by trial and error after 20 minutes. Right-click the .desktop file, click on "Properties", go to tab "Open With" and select "Run Software". Click the button "Set as Default" and close the window. Right-click again the .desktop file and click on "Allow Lauching". Jesus, I feel so dumb now; of course it's Run Software!

Thanks for the answer, it may help MATE desktop users who have the same problem.

Edit: the answer (that someone posted) related to MATE desktop was deleted.