Completely wasting tokens

Hey, thanks for the report. This matches a known terminal issue on Windows. Please try in order:

  1. Settings Ctrl+Shift+J → Agents → Inline Editing & Terminal → enable Legacy Terminal Tool, then Ctrl+Shift+P → Terminal: Kill All Terminals → fully restart Cursor
    Details: Agent Terminal not working

  2. If there’s still no output, delete the corrupted workspaceStorage state and restart Cursor
    Guide and warnings: [SOLVED] Terminal Output Not Showing in Agent Mode - Delete workspaceStorage Folder (v2.1.39, Windows 11)

  3. As an alternative, set Git Bash as the default terminal on Windows

  4. Temporarily disable the PowerShell extension and check again.

The team is working on a fix and it should land in the next update.