Atlassian tool "transitionJiraIssue" breaks agent completely

The tool “transitionJiraIssue” from the official atlassian mcp server causes the agent to become unresponsive for ANY prompts. I wouldn’t have reported it here if it was only erroring on the tool itself, but it prevents the agent from being used completely. I’m currently using the

"atlassian": {
  "command": "npx",
  "args": ["-y", "mcp-remote", "https://mcp.atlassian.com/v1/sse"]
},

config for atlassian. I’m also using github and puppeteer mcp servers as well. But even with both of those disabled, this error persist so I don’t think it’s any combination. I apologize but I’m not sure if this issue is atlassian’s fault or cursors. But given that it’s presence causes cursors agent to become unusable in all situations, thought it best to report that issue here.

Work around is to click on that tool in cursor to disable it (just the transitionJiraIssue) and the agent goes back to working normally. You just can’t use it to transition jira issues for now.

I’m on windows 11. It only stops me from using cursors AI agent (which is half the point of cursor so I guess you could say it stops me from using cursor).