Jtdylktuy

I made windows shortcut with the following target:

D:APPScygwin64binmintty.exe /bin/env PATH=/local/bin:/usr/local/bin:$PATH /bin/bash --login -i

I was expecting it prepend path with my given values, but it doesn't:

$ echo $PATH

/usr/local/bin:/usr/bin:/local/bin:/usr/local/bin:$PATH:/usr/lib/lapack

i.e. $PATH text went into content without expansion.

How to overcome?

Well I see this is coming a bit late, but hopefully it can help you or someone else having a similar problem.

Since you are running a Windows shortcut, instead of using the syntax for cygwin/*nix environment variable expansion ($VAR_NAME) you probably just need to use the syntax for Windows/CMD.exe expansion (%VAR_NAME%). Also, I am linking two Wikibooks below that should cover pretty much anything you ever need to do with batch files for future reference.

That said, I would have expected your syntax also to work, and I do imagine there is some way to have expansions happen on the "other side", so-to-speak. If I can find a way as I work on my terminal launch script I will update this answer.

References:

1. 
   Programming CMD has most of the basic syntax and essential commands
   


2. 
   Windows Batch Scripting a fairly comprehensive reference for everything
   

_{Notes/Caveat Emptor}

_{cmd shell scripting leaves a lot to be desired, and I think you can easily google for something that gives you a run down on all the details. I just wanted to mention it, and mention that there is nothing stopping you from using something like 'MinGW-x64' (I recommend researching the difference between 'MinGW-x64' and the original if you are in doubt; they are maintained by separate entities), or something like Cygwin, which you clearly already have some experience with, either of which will allow you to do sh/bash scripting.}

_{MinGW-x64 is simplified and has an incomplete POSIX implementation due to some concepts that are incompatible with the Windows Subsystem without some additional support (well, the Microsoft VC runtime, I guess; and I think there are circumstances where you need to at least with MinGW if not MinGW-x64) but I mention it first, since it is a 'native' (i.e. 'fast') solution.}

_{Cygwin provides its 'compatibility layer' .dll that provides a fairly complete POSIX environment, at the cost of (a) some fairly siginificant overhead (at least in some cases) and (b) having a fairly complex extra .dll that has to be provided with any software you make with it, and at the cost/benefit (depending on your perspective) of being fairly well locked into the GPL if you use it for your project and link to the compatibility layer.}

_{However, as an alternative, this answer mentions Red Hat's Cygwin license offer for non-GPL license terms on Cygwin, if you so desire. (And, of course assuming that it's cost-effective for you and your project.) However, for personal or in-house shell scripting (i.e., not 'distributed', an, so, not covered by the GPL) it might very well be a good choice, and would almost certainly be better than futzing around with the idiosyncrasies of a DOS-era product still stuck supporting poor decisions made well over 30 years ago.}