The embedded terminal should use the default profile, but it does not.
> terminal.py line 34,35
> class GeditTerminal(Gtk.Box):
>    """VTE terminal which follows gnome-terminal default profile options"""

Additionally, use-theme-colors is set true. When set false the following error is raised.
> $ gedit
> Traceback (most recent call last):
>   File "/usr/lib/gedit/plugins/terminal.py", line 251, in do_activate
>     self._panel = GeditTerminal()
>   File "/usr/lib/gedit/plugins/terminal.py", line 59, in __init__
>     self.reconfigure_vte()
>   File "/usr/lib/gedit/plugins/terminal.py", line 129, in reconfigure_vte
>     parsed, fg = Gdk.RGBA().parse (fg_color)
> TypeError: 'bool' object is not iterable

My Settings:

> $ gsettings list-recursively org.gnome.gedit.plugins.terminal
> org.gnome.gedit.plugins.terminal allow-bold true
> org.gnome.gedit.plugins.terminal background-color '#FFFFDD'
> org.gnome.gedit.plugins.terminal cursor-blink-mode 'system'
> org.gnome.gedit.plugins.terminal cursor-shape 'block'
> org.gnome.gedit.plugins.terminal font 'Monospace 10'
> org.gnome.gedit.plugins.terminal foreground-color '#000000'
> snipped 8<
> org.gnome.gedit.plugins.terminal scrollback-lines 100
> org.gnome.gedit.plugins.terminal scrollback-on-keystroke true
> org.gnome.gedit.plugins.terminal scrollback-on-output false
> org.gnome.gedit.plugins.terminal scrollback-unlimited false
> org.gnome.gedit.plugins.terminal silent-bell true
> org.gnome.gedit.plugins.terminal use-system-font true
> org.gnome.gedit.plugins.terminal use-theme-colors false
> org.gnome.gedit.plugins.terminal word-chars '-A-Za-z0-9,./?%&#:_'

Regards,
Brian