Hey, thanks for the detailed write-up. This isn’t a bug, the behavior changed.
Using your own API key (BYOK) for DeepSeek and other custom models in Agent, Composer, Edit, and Ask now requires a Pro subscription on all plans. On Free, it used to work as an undocumented option, but that’s now closed. The “you’ve hit your usage limit” message is misleading in this case, it’s actually a subscription check.
Options:
Upgrade to Pro to keep using BYOK
Stay on Free and use Cursor’s free models without your own key