https://forum.cursor.com/t/extension-host-terminated/149042/29?u=gerst20051
You can download version 2.3 from their website.
https://cursor.com/download
https://api2.cursor.sh/updates/download/golden/darwin-arm64/cursor/2.3
I fixed it by downgrading back to the version 2.3.41 installed via brew.
https://formulae.brew.sh/cask/cursor
[$]> brew install --cask cursor