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

Support Bug Reports
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1

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

Screenshot 2026-01-11 at 19.08.08.png
Screenshot 2026-01-11 at 19.08.08.png2312×1466 193 KB

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

1 Like
4

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