City churches terrible? Not all (7)

I believe the answer is:

chester

'city' is the definition.
(Chester is an example)

'churches terrible? not all' is the wordplay.
'not all' indicates the answer is hidden within the clue.
'CHESTER' can be found hidden inside 'churches terrible'.

(Other definitions for chester that I've seen before include "historic city" , "diocese" , "Tetchy cries (anag)" , "Walled English city" , "Walled UK city" .)

I've seen this clue in The Telegraph.

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