Can't use codespaces

I am trying to set up codespaces with Cursor the way it works with vscode, using the codespaces extension. I keep getting an error message:

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It reads “Failed to connect to codespace, exception was thrown by handler. exception: failed to start vs code remote server”

On github, I can run this codespace in a browser and it works. On vs code, I can attach to it as a remote using the same extension and it works.

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I get the same error also