Your 'xterm&; xterm&;' has a few issues to point out. First, you do not need
the semi-colon at all. And second, you are spawning processes that need to
connect to an X server, which is where the "user interface" lives for them.
"User interface" was just ambiguous here, methinks.

No file descriptors are passed around with creating background processes; those
are possible only when done programatically, although there are exceptions.

OK, so I looked for the rest, especially the "reverse" setting of "tostop".
There isn't one. All of what I know, and likely all of what exists, is here:
https://www.ibm.com/support/knowledgecenter/en/SSLTBW_2.1.0/com.ibm.zos.v2r1.bpxa400/bpxug212.htm