Thanks for reporting this! This looks similar to a recently solved issue.
Please try these steps:
Check MCP servers: Go to Cursor Settings → MCP → disable any enabled MCP servers (this fixed a similar Bad Request issue: Bad Request Since Updating to 2.0.38)
If that doesn’t help, try:
Start a fresh chat (does it work in new chats?)
Settings → Network → Run Diagnostics
If on VPN: Settings → search “HTTP/2” → enable “Disable HTTP/2”
Share diagnostics: Could you please provide:
Whether you have any MCP servers enabled
Request ID: Chat context menu (top right) → Copy Request ID