Agent Execution Timed Out – Extension Host not responding

Support Bug Reports
10

Hey @kaha, thanks for the detailed report and the log!

The component that runs Agent commands can’t start because PowerShell isn’t accessible on your machine (it’s blocked and removed from PATH by policy), so every Agent message times out before it ever reaches our servers. Your team is already in touch with us about this exact issue, and I’ve added your report to it.

To get working again:

  1. Update Cursor to the latest version (3.17).
  2. Make sure Git for Windows is installed, then set Git Bash as your default terminal with an explicit path. Open the Command Palette (Ctrl+Shift+P) → “Preferences: Open User Settings (JSON)” and add:
"terminal.integrated.profiles.windows": {
  "Git Bash": { "path": "C:\\Program Files\\Git\\bin\\bash.exe" }
},
"terminal.integrated.defaultProfile.windows": "Git Bash"
  1. In Cursor Settings → Chat, make sure Legacy Terminal Tool is turned off (it’s off by default).
  2. Fully quit and reopen Cursor (not just Reload Window).

This exact setup was verified working on another machine at your company that hit the same issue. Let us know how it goes!