1.7.11: Agent Terminal starts outside the workspace

[Artemonim]

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

The Agent Terminal starts outside the workspace. Agent has to switch to the working folder.

Steps to Reproduce

Ask Agent to run a script in a project workspace.

Expected Behavior

before v1.7.x scripts in the root of the project was just running

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.7.11 (user setup)
VSCode Version: 1.99.3
Commit: 867f14c797c14c23a187097ea179bc97d215a7c0
Date: 2025-09-26T16:55:04.318Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.22631

For AI issues: which model did you use?

Grok Code Fast

For AI issues: add Request ID with privacy disabled

82b1aa45-7084-448c-9412-9c143d100e16

Does this stop you from using Cursor

No - Cursor works, but with this issue

[Artemonim]

Don’t miss the other bugreports of the brand new broken terminal!

• 1.7.11: Agent Terminal shows incomplete history
• 1.7.11: Agent Terminal lost colors
• 1.7.11: The Agent's terminal stopped accepting keyboard Interrupt
• 1.7.11: Canceling or killing the (Agent?) console leaves zombie processes
• next comment in the thread

[Artemonim]

Also, there is no longer a problem of this topic, or it was the same problem and I did not notice it. Maybe, only the next three are left:

• 1.7.11: Agent Terminal shows incomplete history
• 1.7.11: Agent Terminal lost colors
• 1.7.11: The Agent's terminal stopped accepting keyboard Interrupt