[Bug] Jupyter Notebooks & AI Panel broken after upgrading to Cursor 3

Clearing the cash worked for me on Mac, here are the steps:

Close Cursor first, then open Terminal and run:

rm -rf ~/Library/Application\ Support/Cursor/CachedExtensions
rm -rf ~/Library/Application\ Support/Cursor/CachedExtensionVSIXs

Then relaunch Cursor and try opening a notebook.