Hey, thanks for the detailed report and for the Git Bash workaround - super helpful.
This is a known regression in the new Windows terminal. We’re tracking it here: Cursor version 2.1.39 has terminal bug
To help us fix it faster, please attach:
- Logs from Help → Toggle Developer Tools when the agent tries to run a command
- Output from “Extension Host” and “Shared Process” at the time of the error
- The result of launching Cursor with
--disable-extensions
I’ll link your case to the existing issue.