Hey, thanks for the report. It looks like the same Windows terminal regression that started in 2.1.39 (see related thread: Cursor version 2.1.39 has terminal bug)
For now, temporarily:
- Settings > Agents > Inline Editing & Terminal → enable “Legacy Terminal Tool”
Ctrl+Shift+P→ Terminal: Kill All Terminals, then fully restart Cursor
Can you please attach:
- Request ID of the problematic run (chat menu > Copy Request ID)
- Screenshot of the external terminal at the moment ^C appears + exact time
- Logs: Help > Toggle Developer Tools > Console (errors)
- Clarify: Does it only happen after “Open in external terminal” or even without it? What shell on the remote Linux (bash/zsh)? Which SSH extension are you using?
Let me know if Legacy/kill terminals/restart helps.