After updating our team settings with the solution here Projects not allowing hand-off to local - #7 by kevinn , trying to create a new project results in this error message. This is strange since we are not actually using self-hosted machines, although the option is turned on to allow opt-in usage. Retrying fails with the same message.
Edit: I’m actually seeing this on non-project cloud agent sessions as well now.
Hey @Michael_Flores, thanks for the report.
This one comes from a team setting rather than your machine. When your admin turned on Remote Control, it also turned on “Enable Self-hosted Machines”, and on your team the toggle right below it, “Require Self-hosted Machines and Personal Machines”, is now on as well. That toggle blocks Cloud Agents (including Projects) from running on Cursor’s cloud, so a new Project waits for a shared self-hosted machine, finds none, and shows that error.
To fix it, a team admin can:
- Go to cursor.com/dashboard and open Cloud Agents.
- Scroll to the Self-hosted Machines section (https://cursor.com/dashboard/cloud-agents#self-hosted)
- Turn off “Require Self-hosted Machines and Personal Machines”.
- Leave “Enable Remote Control for Team” and “Enable Self-hosted Machines” on, so local handoff keeps working.
Then create a new Project again. Does it start normally after that? If it still shows the same message, reply with the agent ID (bc-…) and the time you tried, and I will take another look.
You are crushing today, that did the trick! thank you!
Thank you, Michael!

