Claude-3.7-sonnet MAX "thinking" but no response

I am tried several times creating a new agent prompt for claude-3.7-sonnet MAX and it results in “Thought for X seconds” showing me the steps it’s thinking through, however no reply from the agent is generated and no code files are modified by Cursor.

Unfortunately even though nothing is generated by Cursor I was still charged $0.05 each time I try to figure out how to get it to work properly. I have tried starting new chats, updating and restarting Cursor as well.

Here is the Request ID: 984b2059-3645-44c0-9a18-066c3e77bdd0

Version: 0.47.8
VSCode Version: 1.96.2
Commit: 82ef0f61c01d079d1b7e5ab04d88499d5af500e0
Date: 2025-03-18T06:55:51.040Z
Electron: 32.2.6
Chromium: 128.0.6613.186
Node.js: 20.18.1
V8: 12.8.374.38-electron.0
OS: Darwin arm64 24.3.0