I'm using fish-shell and because Midnight Commander doesn't cope that well with it, I set my SHELL variable to bash so mc creates a bash subshell. So far, so good.
Now when running tig (ncurses git frontend) from within mc and creating a new commit, neovim (my configured editor) pops up and lets me enter the commit message. After storing that and closing nvim, pinentry-curses pops up and wants my passphrase. However, every second or third character is shown as plaintext and even when entering the correct passphrase, it isn't accepted. (On a sidenode: Ctrl-C'ing out of pinentry isn't possible at this point. Also the "Cancel" button only works sometimes.)
Now if I close mc and run tig directly from the (fish-)shell, everything works as expected - pinentry shows only asterisks and happily accepts my passphrase.
This is on Ubuntu 17.10 with pinentry-curses 1.0.0-2.