Hey, thanks for the report.
This isn’t a bug. The chat toggle button was removed on purpose in favor of customizable layouts. Lee from the Cursor team explained the change here: [Megathread] Cursor layout and UI feedback
How to open and close chat now:
- Use hotkeys:
Cmd+IorCmd+Lto toggle the Sidepanel Cmd+Eto toggle the Agent layout- Customize your layout via the gear icon in the top-right corner
The team is working on adding more keybindings to switch between views. You can find all available shortcuts in the docs: Keyboard Shortcuts | Cursor Docs
Try Cmd+I or Cmd+L, it should be faster than a button. Let me know if that helps.