BUG #12903: cannot start, locale problem

The following bug has been logged on the website:

Bug reference: 12903
Logged by: Didi Hu
Email address: hu_didi(at)hotmail(dot)com
PostgreSQL version: 9.4.1
Operating system: windows 7
Description:

I have postgresql 9.3.6 running windows 7 and everything looks fine.

Now I tried to run 9.4.1, I am running into locale problem.
I use initdb to create with --locale="English_United States.1252".
Then when I try to start the server,
it gives me
FATAL: XX000: could not adopt C locale
LOCATION: init_locale, src\backend\main\main.c:315
But if I tried initdb without locale,
--no-locale, I could not create data directory at all.

By the way, the new 9.4.1 does not search the directory when pg_ctl is
located for other binaries, one need to add bin to PATH. The old 9.3.6 will
search it. So with 9.4.1, it will report
could not locate matching executable if bin is not in the path.