Cloud Agent fails to start (501 on save)

[snb]

Where does the bug appear (feature/product)?

Background Agent (GitHub, Slack, Web, Linear)

Describe the Bug

I’m encountering an issue with Cloud Agent setup.

The environment setup completes, but:

• Saving the environment fails with 501 (both Personal and Team)
• Using a previously saved environment returns 400
• Even without saving, I cannot run any commands (e.g. echo hello)
  → it always redirects back to “Open Setup”

What I have already tried:

• Minimal Dockerfile
• .cursor/environment.json only specifies Dockerfile
• Removed all optional secrets
• No proxy environment variables set
• Created a completely new agent
• Reconnected GitHub integration
• Tried different browsers / refresh

So far, nothing works and the agent never becomes usable.

Is this a known issue with Cloud Agent environment setup?
Any workaround would be appreciated.

Steps to Reproduce

1. Create a new Cloud Agent for a repository
2. Use a minimal setup:
   • .cursor/environment.json only specifies Dockerfile
   • Dockerfile is minimal (Ubuntu base, no additional tools)
3. Add minimal secrets (or even no secrets)
4. Run setup (reaches “Setting up environment” → completes)
5. Try:
   • “Save to Personal” or “Save to Team” → returns 501
   • Start new agent and run echo hello → redirected back to setup
   • Use previously saved environment → returns 400

Expected Behavior

• After setup completes, the agent should be usable
• Saving the environment should succeed without errors

Screenshots / Screen Recordings

Operating System

MacOS

Version Information

Not applicable

Does this stop you from using Cursor

Yes - Cursor is unusable

[mohitjain (Mohit)]

Hi there!

This is a server-side issue on our end. Your Dockerfile and setup are fine — the 501 is coming from our cloud agent infrastructure, not anything on your side.

Our team is aware of this and actively working on a fix. I’ve flagged your case directly and will follow up here once there’s a resolution.