Broken terminal in 1.6

Describe the Bug

Terminal functionality is broken in version 1.6.35. While Cypress end-to-end tests fail with an error, running the same tests manually through the terminal works correctly.

Steps to Reproduce

ask the agent to run some e2e tests with Cypress

Expected Behavior

They operate as expected.

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

1.6.35
i already switched to working 1.5 version, and don’t remember all details

For AI issues: which model did you use?

sonnet 4

Does this stop you from using Cursor

Yes - Cursor is unusable

Is it throwing an error or is it hanging? Can you share what the error is?

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