Hey, this isn’t a bug and it isn’t client-side validation. BYOK for Agent and Edit requires a paid subscription Pro or Teams. On the Free plan, these features are blocked server-side when you use your own API key, so rolling back to Cursor v2 won’t change anything. The restriction applies in any version.
From what we can see, the email on the forum account is currently on the Free plan with no active subscription. You might have seen reports about a similar but different bug where Pro users were incorrectly blocked by a client banner, and that’s already been fixed. That doesn’t apply to the Free plan.
From the screenshot, I can see the standard team usage limit message, but I don’t see clear signs that a BYOK request is what’s getting blocked. To figure it out, I need a few details:
Is BYOK actually set up on the team account (your own API key added in Cursor Settings, and BYOK enabled in the team admin settings)? Or did you just hit the team usage limit without BYOK?
If BYOK is set up and the request fails with it, please send the Request ID for that request (Chat > three dots in the top right > Copy Request ID).
A screenshot of the exact error or popup when you send the request would also help.
If BYOK isn’t set up on the team, then “team usage limit reached” just means the team limit is used up, and the team admin needs to raise the limit (the Request Limit Increase button on the screenshot goes to them).