Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
Agents get no output from terminal commands tool, including stdout, stderr and exit code.
Steps to Reproduce
Windows, project with a folder path with no special symbols except dots. Ask agent to test its command tool with a simple echo. It reports that no output is available except with required_permissions: ["all"] arg. Go to settings - inline editing - legacy terminal tool - switch on. Ask agent to test. Report is positive now.
Expected Behavior
Agents use terminal commands as usual.
Screenshots / Screen Recordings
Operating System
Windows 10/11
Version Information
Version: 3.6.31 (user setup)
VS Code Extension API: 1.105.1
Commit: 81fcf2931d7687b4ff3f3017858d0c6dee7e2a60
Date: 2026-05-31T17:46:29.630Z
Layout: glass
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
xterm.js: 6.1.0-beta.220
OS: Windows_NT x64 10.0.26200
For AI issues: which model did you use?
Composer 2.5, GPT 5.5, GPT 5.4
For AI issues: add Request ID with privacy disabled
414c5731-a1d4-45b9-8155-10a1628ee75d
Additional Information
Steps were described for special repro case. For a common case, agents tend to silently ignore terminal tool errors or just add some remarks like “terminal is not working for some reason”. This form allows me to attach only single screenshot, although label says “screenshots”, which is annoying.
Does this stop you from using Cursor
No - Cursor works, but with this issue

