Agent Mode Not Working with Own OpenAI API Key

Bug Reports
1

:white_check_mark: Checked the forum — I haven’t found this issue reported elsewhere.

:lady_beetle: Bug Description:
When I switch to Agent mode while using my own OpenAI API key, the assistant no longer performs code rewrites or in-editor changes. It only functions as a basic chat interface, without the smart contextual features typically available in Agent mode.

:counterclockwise_arrows_button: How to Reproduce the Bug:

  1. Go to Settings → API Keys.
  2. Add and switch to your own OpenAI API key.
  3. Enable Agent Mode in the command palette or settings.
  4. Try to perform a code rewrite or inline edit.

:collision: Instead of modifying code, it only replies as if it’s in a regular chat window. No suggestions or edits are made in the code editor.

:camera: Screenshots / Recordings:

Screenshot (1)
Screenshot (1)1920×1080 413 KB

:laptop: Environment:

  • OS: [e.g., macOS 14.4.1 / Windows 11]
  • Cursor Version: [e.g., 0.32.3]

:prohibited: Impact:
Yes — this bug prevents me from using one of Cursor’s most valuable features. Agent mode becomes unusable with my API key, and I can’t leverage code rewrite functionality.

Would appreciate any help or clarification on whether this is a known limitation or an actual bug.

Thanks!