Cursor 3 not clearing notification and showing thinking icon

Support Bug Reports
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Thanks for the detailed report with screenshots. I’ll go through each point:

  1. Notification badge doesn’t reset - known issue, several reports in the last month, including this thread. Team’s aware, no ETA yet, but your report helps with prioritization.

  2. No thinking model indicator - known thing too, mentioned here and here. Team’s on it. Workaround for now: in the model dropdown you can see thinking/non-thinking options.

  3. Localhost links auto-open in system browser - I see “Show Localhost Links in Browser” is off. Small nuance: this setting controls links in Cursor’s Browser Tab, not the system browser. Issue’s likely in a separate mechanism for the agents window (doesn’t happen in editor window). Passed to the team. Workaround: run npm run dev etc. from the terminal in the editor window.

Let me know if there’s anything else.