Code auto-applying after update

Good afternoon, today I updated cursor and after I updated it I no longer get a Keep/Undo diff for all code changes in a single file. It also looks to happen if the agent makes multiple edits to the same file, the initial edit gives me the Keep/Undo but the second edit it does just automatically applies which I absolutely do not want it to do. See line 1 versus line 40 in my screenshot, line 40 was automatically applied to the code file without asking me to keep/undo.

Is this a setting I changed somehow or a results of the update and how do I turn it off?

Been on cursor for 3 years now and never seen this behave this way so would love to go back to seeing keep/undo on all edits in a file.

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Yes, this has been happening for a couple days. Lots of reports.

Reverting to 2.4 fixed everything for me. Cursor · Download

Should not have to do this, but I am just going to move on and get back to work.

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Same issue. My version is 2.4 so I don’t even know what my alternative is then, except quitting.

Version: 2.4.37 (Universal)
VSCode Version: 1.105.1
Commit: 7b9c34466f5c119e93c3e654bb80fe9306b6cc70
Date: 2026-02-12T23:15:35.107Z
Build Type: Stable
Release Track: Default
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin arm64 23.1.0

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I hgave been using the source control tab on the left side to see what it changed and reject it from there. Hope this gets fixed soon because it for sure is a problem.

Dang, I reverted to the same version and the issue was resolved for me.

I tried reverting to an even older 2.3 just now, and the issue is finally gone lol. Hope they fix this soon.

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For those who still need this solution, it is now updated with Inline Diffs option in the settings, the default value was off unfortunately, but if you turn it on. This feature comes back. Thanks Cursor.