Cloud Agents Setup: "No remote extension installed to resolve background-composer" error during Machine Snapshot creation

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

I’m trying to set up Cloud Agents for my repository, but I’m unable to connect to the remote environment during the “Create a Machine Snapshot” step.

Steps to Reproduce

  1. Go to Cloud Agents Setup
  2. Connect to GitHub (✓ succeeds)
  3. Proceed to “Create a Machine Snapshot” step
  4. The environment builds successfully
  5. When Cursor tries to connect to the remote environment, it fails

Expected Behavior

Connect to the created environment to proceed with the setup

Screenshots / Screen Recordings

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.3.34 (Universal)
VSCode Version: 1.105.1
Commit: 643ba67cd252e2888e296dd0cf34a0c5d7625b90
Date: 2026-01-10T21:17:10.428Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Darwin arm64 25.2.0

Additional Information

The environment appears to build correctly, but the connection to configure it fails immediately. It seems like the remote extension required for background-composer is not being installed or recognized in the cloud environment.

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor

4 Likes

Hey, thanks for the report. This is a known issue with Cloud Agent infrastructure. The error “No remote extension installed to resolve background-composer” is a variation of an exec-daemon issue we’re aware of.

Similar issues:

The team is working on fixing the infrastructure issues with Cloud Agent setup. For now, please try these workarounds:

  • Wait 10 to 15 minutes, then try setup again. Sometimes temporary glitches resolve on their own
  • If you’re using a VPN or proxy, turn it off completely
  • Check your network: Settings > Network > Run Diagnostics
  • Try again at a different time of day. There may be regional AWS issues
  • Try using a Dockerfile instead of Manual Snapshot. This helps some users
2 Likes

Is there any timeframe on fixing this bug? It’s happening to me as well and the mitigation steps are not working.

1 Like

This is happening to me as well, I have not been able to follow any of these steps successfully after many attempts :frowning:

This started working for me after updating to this release (I opted in to Early Access releases):

Version: 2.4.2 (Universal)
VSCode Version: 1.105.1
Commit: 7d37854462030d31d936c7f7ed9015b870551e90
Date: 2026-01-20T06:54:16.351Z
Build Type: Stable
Release Track: Early Access
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin arm64 25.2.0

I can confirm this is working with the latest Early Release:

Version: 2.4.7
VSCode Version: 1.105.1
Commit: ca0f9bf806f235ea014a22712cbcbf5e88ca77e0
Date: 2026-01-20T20:52:38.077Z
Build Type: Stable
Release Track: Early Access
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin arm64 24.2.0

Yes! The Early Release version fixes this issue!

Version: 2.4.21
VSCode Version: 1.105.1
Commit: dc8361355d709f306d5159635a677a571b277bc0
Date: 2026-01-22T16:57:59.675Z
Build Type: Stable
Release Track: Early Access
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin arm64 25.2.0

Now it works and you can setup the environment but the usage of Cloud Agents is still random and you don’t have the ability to debug it. I completed the setup and tried to complete some github issues. The first problem I encountered is a permission issue from the gh commands to fetch it. The repository is connected to Cursor correctly and it has the permission to read and write inside it. Then I started to execute it directly from github adding “@cursor” in the comment of the issue to trigger the bot. It worked fine but it wasn’t using the branch selected as default in Cursor dashboard configuration and not reading the rules I prepared for the agent. Then I merged all the content into the main branch to be sure it would read those rules. Now after I comment the issue to start the agent a new workspace is created but it’s empty. I can’t even see the preparation of the workspace like building it or launching the initialization script I had in the environment. It just shows the default prompt when triggered from github comment but it stops there and says it’s completed. No errors showing or either suggestions. For me now Cursor is usable only from my PC but all the cloud part is not reliable. @deanrie

1 Like