Context
Since updating to Cursor 0.48.0 or later, the Auto-Apply Edits feature no longer works when using a custom OpenAI-compatible proxy (e.g., self-hosted server like Ollama, LM Studio, or a personal OpenAI proxy).
Expected Behavior
Before version 0.48:
- When using a proxy, Auto-Apply Edits worked correctly.
- Once the model suggested an edit, it was automatically applied without needing to manually click “Apply to …”, thanks to the setting in my Custom Mode.
Actual Behavior
- Since version 0.48.0, I have to manually click “Apply to …” every time to apply edits.
- I have a Custom Mode enabled with Auto-Apply Edits turned on, but it’s ignored.
- Reverting back to version 0.47.9 restores the correct behavior — everything works fine again with the same proxy and custom agent.
- I had previously created custom agents in version 0.47.0.1, and everything worked perfectly with Auto-Apply.
Additional Notes
- Tested with multiple OpenAI-compatible proxies (including custom models like Mistral, GPTQ, etc.).
- This issue only appears from version 0.48.0 and above.
- Likely a regression related to the handling of proxies or custom agents.