Thanks for the detailed report! We will look into this, meanwhile this might help:
Try enabling Legacy Terminal Tool:
- Open Cursor Settings (
Ctrl+Shift+J) - Go to Agents tab → Inline Editing & Terminal
- Enable “Legacy Terminal Tool”
- Run
Ctrl+Shift+P→ “Terminal: Kill All Terminals” - Fully restart Cursor
This workaround has resolved similar dump_bash_state syntax errors for other users (related topic).
Could you clarify: is this error happening in the Agent terminal (when AI runs commands) or in the regular integrated terminal when you type commands manually? That will help if further investigation is needed.