Compatibility with "SSH FS" extension

I am using the “SSH FS” extension (SSH FS - Visual Studio Marketplace) to open remote files over ssh. The plugin works great overall but seems to break Cursor’s AI functionality.

Asking a question in Chat just gets stuck on “Generating” with no output.

The Codebase Indexing doesn’t get past Setup.

Looking at the Developer Tools output, I see errors like this:

workbench.desktop.main.js:2297 [anysphere.cursor-retrieval]failed to create Merkle tree: root directory '\remote-shell-path' does not exist

and

Error: failed to create Merkle tree: root directory '\remote-shell-path' does not exist
at new A.RepoIndexWatcher (c:\Users[me]\AppData\Local\Programs\cursor\resources\app\extensions\cursor-retrieval\dist\main.js:2:1376952)
at A.FastIndexer.createRepoIndexWatcherIfShouldIndex (c:\Users[me]\AppData\Local\Programs\cursor\resources\app\extensions\cursor-retrieval\dist\main.js:2:1349205)

(where \remote-shell-path\ is the “ssh fs” extension remote directory)

I’m sure that error is related to the indexing of the codebase, but does that also stop chat from working?

Is there any way to work around this so that I can use Cursor AI with “SSH FS” extension?

I’m on Windows 11, Cursor version 0.46.9

Thank you,
Jeff

Worked around this using sshfs-win at the filesystem layer.

This extension caused infinite generation bug for me today, when it left the virtual file system hanging in the files tab. When I removed the stale ssh filesystem, everything started working again.

Version: 0.47.8 (user setup)
VSCode Version: 1.96.2
Commit: 82ef0f61c01d079d1b7e5ab04d88499d5af500e0
Date: 2025-03-18T05:39:50.993Z
Electron: 32.2.6
Chromium: 128.0.6613.186
Node.js: 20.18.1
V8: 12.8.374.38-electron.0
OS: Windows_NT x64 10.0.26100

Have the same issue with the extension on Macos 15.3.2.

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