Hey, thanks for the report. This is a known issue with the agent terminal on Windows in versions 2.0+.
Try this workaround:
- Settings
Ctrl+Shift+J→ Agents → Inline Editing & Terminal → enable “Legacy Terminal Tool” Ctrl+Shift+P→ “Terminal: Kill All Terminals” → restart Cursor
Details and discussion: Agent Terminal not working
If the Legacy Terminal Tool doesn’t help, please share:
- The Request ID from the failing step (in chat: right-click → Copy Request ID)
- Which terminal profile you’re using (PowerShell/CMD/WSL/Git Bash)
- Whether it’s a local project or via SSH/Remote
- A screenshot/video of the issue and logs from Help → Toggle Developer Tools → Console
About interactivity: the agent terminal is currently non-interactive by design, and the team is working on improvements.