Seeing the same issue. Custom MCP server with OAuth and was working previously, but errors now with the message below. Claude code authenticates fine and shows all tools, so looks like something broke with your implementation.
Youβre also still hanging onto old client ids even after uninstall, which requires a full cursor reinstall to get around.
2025-08-20 16:27:21.922 [info] Creating streamableHttp transport
2025-08-20 16:27:21.922 [info] Connecting to streamableHttp server
2025-08-20 16:27:21.953 [info] OAuth provider needs auth callback during connection
2025-08-20 16:27:21.953 [error] Error connecting to streamableHttp server, falling back to SSE: Unauthorized
2025-08-20 16:27:21.954 [warning] Unauthorized error connecting to streamableHttp server, returning transport
2025-08-20 16:27:21.954 [info] Successfully connected to streamableHttp server
2025-08-20 16:27:21.954 [info] Storing streamableHttp client
2025-08-20 16:27:21.954 [info] Connected to streamableHttp server, fetching offerings
2025-08-20 16:27:21.954 [info] Found 0 tools and 0 prompts
2025-08-20 16:27:27.909 [info] Received OAuth callback with code
2025-08-20 16:27:27.953 [error] Failed to complete OAuth exchange An unknown error occurred. Please consult the log for more details.
@deanrie Iβm not seeing a client_id or client_secret in the request body to my token exchange request at /oauth/tokenand suspect that could be the source of the issue
Hereβs a comparison of the payloads I see from the Claude Code vs. Cursor