Cursor 2.0 is buggy with respect to the terminal?

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

When cursor runs commands automatically in its terminal in the IDE, its extremely buggy, laggy and does not even show print statements (unless i refresh my site) for debugging. This is definitely a 2.0 version issue because I immediately reinstalled 1.5 and everything worked perfectly again.

Steps to Reproduce

Develop a simple unicorn html vanilla js site and add some print statements for debugging. You will notice they do not appear upon running the site. My site was a chatbot to test certain messages and it did not work.

Expected Behavior

Print statements and terminal commands should be running extremely smoothly like how our local system and previous cursor versions executed terminal commands.

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.5.9 (Universal)
VSCode Version: 1.99.3
Commit: de327274300c6f38ec9f4240d11e82c3b0660b20
Date: 2025-08-30T21:02:27.236Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.5.0

For AI issues: which model did you use?

Auto

Does this stop you from using Cursor

No - Cursor works, but with this issue