Check your MCP output logs. I’m having the same issue because I’m working on windows inside WSL, and cursor attempts to execute the MCP commands on the Windows Host which doesn’t have my environment configured for anything.
Switching my default Node.js version from 14 to 18 fixed the issue, but it was still buggy. I had to restart the app multiple times and refresh the MCP server connection.
“nvm alias default 18”
It might be specific only for me, but on Ubuntu 20.04 running the .Appimage as an executable from the terminal helps to solve the issue, while opening it from GUI or from the Applications tab results in “failed to create the client”