All shell commands are returning exit code 127 with no output

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

All shell commands are returning exit code 127 with no output. This indicates there’s an issue with the shell environment - basic commands like echo, pwd, and which are not being found.

This only happens in one of my projects. I have tried restarting cursor, reconnecting the window. What else can I do?

Steps to Reproduce

I am not sure how to reproduce because this works in all my other projects on the same SSH server.

Operating System

Windows 10/11

Version Information

Version: 3.1.17 (user setup)
VSCode Version: 1.105.1
Commit: fce1e9ab7844f9ea35793da01e634aa7e50bce90
Date: 2026-04-19T19:33:58.189Z
Layout: editor
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
OS: Windows_NT x64 10.0.22631

Does this stop you from using Cursor

Yes - Cursor is unusable

I found the issue.
The problem was that I had two “.cursor” directories, one in my home directory and one in the workspace.
When I removed the one in the workspace, all commands work now.
The cursor directory in the workspace was pointing to another workspace that used relative paths.
Since these relative paths did not resolve correctly in my area, the commands returned exit code of 127

Thanks for following up and letting us know!