Xterm closes window on mouse button click

When I hit Ctrl+Button(1/2/3) the xterm window gets closed the same way as if I just hit Ctrl+d. The expected behavior would be to bring a pop-up menu with settings, different one for each mouse button pressed. It is not my dwm settings (I’m almost sure) as only xterm windows are concerned (no other apps) and I have nothing like that defined on mouse button click anyway. I am really lost as to what can be causing this behavior, because I already used this dwm config with the same xterm config and everything was normal.

I am not sure what information may be relevant to the issue, so here’s my xterm related settings from my .Xresources:

!           XTERM
! set correct TERM env var
XTerm.termName: xterm-256color
! follow the locale
XTerm.vt100.locale: true
! Alt sends '^[' (escape) key
XTerm.vt100.metaSendsEscape: true
! save more scrolled off lines
XTerm.vt100.saveLines: 2048
! enable TrueFont by default
XTerm.vt100.renderFont: true
! fonts
XTerm.vt100.faceName: monospace:size=10:antialias=true
XTerm.vt100.font: 7x13
! colors
XTerm.vt100.foreground: white
XTerm.vt100.background: black

My dwm mouse related part of the config.h (I left this part at default):

/* button definitions */
/* click can be ClkTagBar, ClkLtSymbol, ClkStatusText, ClkWinTitle, ClkClientWin, or ClkRootWin */
static Button buttons[] = {
	/* click                event mask      button          function        argument */
	{ ClkLtSymbol,          0,              Button1,        setlayout,      {0} },
	{ ClkLtSymbol,          0,              Button3,        setlayout,      {.v = &layouts[2]} },
	{ ClkWinTitle,          0,              Button2,        zoom,           {0} },
	{ ClkStatusText,        0,              Button2,        spawn,          {.v = termcmd } },
	{ ClkClientWin,         MODKEY,         Button1,        movemouse,      {0} },
	{ ClkClientWin,         MODKEY,         Button2,        togglefloating, {0} },
	{ ClkClientWin,         MODKEY,         Button3,        resizemouse,    {0} },
	{ ClkTagBar,            0,              Button1,        view,           {0} },
	{ ClkTagBar,            0,              Button3,        toggleview,     {0} },
	{ ClkTagBar,            MODKEY,         Button1,        tag,            {0} },
	{ ClkTagBar,            MODKEY,         Button3,        toggletag,      {0} },

And my libinput settings, in case it’s relevant (I am using touchpad):

Section "InputClass"
	Identifier "devname"
	Driver "libinput"
	Option "AccelProfile" "adaptive"
	Option "AccelSpeed" "0.8"
	Option "DisableWhileTyping" "true"
	Option "HorizontalScrolling" "true"
	Option "MiddleEmulation" "true"

Seems like this error was causing xterm to abort: Unable to load any usable ISO8859 font.
Installing xorg-fonts-misc package fixed it.