Hey, thanks for the report. This is a known issue with the PowerShell wrapper script that Cursor uses to run commands through the agent. The script tries to collect environment variables via Get-ChildItem Env:, but on Windows the same variable (Path, TEMP, etc.) can exist in multiple scopes (Process, User, Machine), and the script can’t handle duplicates.
Here’s a workaround that helped other users:
- Open Cursor Settings
Ctrl+Shift+J - Go to Agents, find Legacy Terminal Tool
- Enable it
Ctrl+Shift+P→ Terminal: Kill All Terminals- Fully restart Cursor
- Try running commands again
Legacy Terminal Tool uses the older implementation, which avoids this wrapper script issue.
Another option is to install PowerShell 7 instead of the built-in Windows PowerShell 5.1. One user fixed it that way: Agent running commands is broken
Let me know if this doesn’t help.