I have been running into this a lot lately, too. Keep meaning to write up a bug report, but, I have so much work to do, and with productivity losses in Cursor 2, I have so little time…
Dude, turn off updates and roll it back to 1.7
Most of the 1.7 versions have tons of issues as well. There is one version that semi-works, 1.7.28, but it has enough problems of its own, that I am not sure its better than 2.0. At this point, since 1.7 is old news, it seems, I’d rather use 2.0 and post bug reports, and maybe get things fixed as they move forward. 
The Cursor team needs to stop pushing out poor quality releases or releases where they’ve nuked a ton of features. They are blazing forward without much concerns for how their changes affect their users. I’m going to be vocal until they start picking up on the message: Slow the heck down, think more, plan better, release more carefully.
Also: Stop breaking/removing useful features your users like!!!