Cloud Automation fails with Environment error after "Ran update script"

Hey, thanks for the detailed report. This looks like the same case we discussed in another thread recently, a crash during environment setup before the model even starts, so switching models won’t change anything.

Key point: deleting .cursor/environment.json from the repo does not clear the saved environment on our side. It stays there and keeps getting used. That’s why echo no-op didn’t help. There’s no separate Delete button for environments in the dashboard right now, so you need to clear it another way.

Try this in order:

  1. Force a snapshot rebuild: make any change to environment.json or setup.sh and push it. This should invalidate the current snapshot and trigger a rebuild. Note: if a broken git state is already stuck in the base layer, changing the config might not rebuild from scratch. If that happens, go to step 2.
  2. Reconnect the GitHub repo via Integrations, reconnect or re-authorize, or create a new environment on top of the same repo with a different name. For another user with the exact same issue, reconnecting the repo recreated the environment and fixed it. Details: Environment Error when running Cloud Agent. If the same repo is connected under a different Cursor account, that could also interfere, so it’s worth checking.
  3. Run Automation again.

If it still doesn’t help, temporarily turn off Privacy Mode, run it again, and send a fresh Request ID bcId for that run. With that, we can look at the logs for that specific run and confirm the cause.

Let me know how it goes.