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

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I also had the same issue and it is working for me. I was in ubuntu 24.04. So I had the change the path based on ubuntu. Just writing, if anyone with ubuntu can see the direct path. So the steps become:

  1. Clear cache: Delete ~/.config/Cursor/CachedExtensions and
    ~/.config/Cursor/CachedExtensionVSIXs
  2. Reset user data: Rename ~/.config/Cursor to ~/.config/Cursor_backup