Hey, thanks for the report. This looks like a regression of an issue that was fixed in 1.6.35.
The same error (“dump_bash_state: command not found”) was reported and resolved in September: Agent's terminal commands fail with dump_bash_state not found
To understand why it resurfaced in 2.0.54, please share:
- Are you working in a local workspace or over remote/SSH?
- Do you have any extensions that might affect terminal behavior?
- Any console errors? (Help > Toggle Developer Tools > Console tab when it occurs)
Try enabling the Legacy Terminal Tool:
- Open Cursor Settings
Cmd+Shift+J - Go to Agents tab → Inline Editing & Terminal
- Enable “Legacy Terminal Tool”
- Press
Cmd+Shift+P→ “Terminal: Kill All Terminals” - Fully restart Cursor
I’ll pass this to the team. Let me know if you can provide those details.