Hey, thanks for the report. Your root cause analysis and the suggested patch are super helpful, and your diagnosis is correct.
This is a known Windows bug: the launcher regex in cursor-agent.ps1 and agent.ps1 doesn’t match the new version folders that include a timestamp YYYY.MM.DD-HH-MM-SS-<commit>, so $versionDir ends up empty and you get “No version directories found”. We’re already tracking it, but there’s no ETA for a fix yet.
Your workaround is correct: update the regex to ^\d{4}\.\d{1,2}\.\d{1,2}-[-a-f0-9]+$ in %LOCALAPPDATA%\cursor-agent\cursor-agent.ps1 and agent.ps1. Like you noticed, it gets reverted on the next auto-update because the root launchers are overwritten by the bundled copy from the version folder. Until the fix ships, you’ll need to re-apply the change after updates, or as an alternative, rename the version folder to remove the time segment.
The same issue is discussed in this thread Agent.ps1 failed to launch (2026.06.11-03-15-00-241fc09). Subscribe there and we’ll post an update once the fix is out.