Cursor 3.22.12 ↔ ms-python.vscode-python-envs terminal API compatibility issue/bug

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1

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

Due to this, the file path is not getting injected into the latest powershell 7 terminal on a single play button click. Clicking play button just opens the terminal and we need to click it once more to inject the file path and execute it…instead of injection and execution happening in single click only along with terminal creation.

Steps to Reproduce

First ensure the latest cursor IDE version is configured perfectly to use the latest powershell 7(pwsh.exe) terminal and shell integration is enabled in the IDE setting( VS Code settings) then try to run a python script and before clicking play button, ensure that the terminal is not opened in the background. And I mean, the panel should not be hidden with terminal opened. The play button should freshly open the terminal. Then notice that the file path is not being injected in single click and not even getting executed. You need to press a play button for the second time.And then it will do the remaining part of injection and execution so in the previous versions of cursor this problem wasn’t there and the file executed in just one single click along with injection of its path and terminal creation too.

Expected Behavior

On clicking the play button, the new terminal should be opened. Powershell 7 (pwsh.exe) and then the file path must be injected into it and executed all in just one play button, click instead of clicking play button 2 times.

Operating System

Windows 10/11

Version Information

Version: 3.22.12 (user setup)
VS Code Extension API: 1.128.0
Commit: 3a92974361033b2051526321308c2740fe5912c0
Date: 2026-09-26T04:55:12.125Z
Layout: IDE
Build Type: Stable
Release Track: Default
Electron: 42.10.0
Chromium: 148.0.7778.280
Node.js: 24.18.1
V8: 14.8.178.38-electron.0
xterm.js: 6.1.0-beta.291
OS: Windows_NT x64 10.0.22631

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Additional Information

No thanks!

Does this stop you from using Cursor

No - Cursor works, but with this issue

5

Hey, thanks for the detailed report and steps. That really helps.

It looks related to the recent update of the Python Environments extension by Microsoft to version 1.38.0. The logic for how the Run button waits for a newly created terminal changed, and in Cursor that flow doesn’t work the same yet. That’s why on the first click the terminal opens, but the path injection and launch only happen on the second click. If it feels like it used to work in older Cursor versions, it’s most likely because the extension auto-updated from 1.36.0, not because Cursor itself updated. I’ve shared this with the team.

As a workaround for now, you can roll back the extension and single-click run should come back:

  1. Open Extensions with Ctrl+Shift+X.
  2. Search for Python Environments by Microsoft.
  3. Click the gear icon, then Install Specific Version…
  4. Pick 1.36.0 and reload the window when prompted.
  5. Click the gear icon again, then disable Auto Update so it doesn’t jump back to 1.38.0.

Could you share which Python Environments version you’re on right now, and whether the rollback helps? Let me know how it goes.