Hey, thanks for the report. This is a known issue with the CLI agent, and the team is aware of it and tracking it.
A couple things to try:
Temporarily disable MCP servers
The CLI agent loads the MCP config from the same files as the IDE, and a stuck MCP server can block startup completely. Try renaming the config to rule this out:
mv ~/.cursor/mcp.json ~/.cursor/mcp.json.bak
If you also have a project .cursor/mcp.json, rename that too. Then run agent again.
Share your cursor-agent version
agent --version
If it works without MCP, that helps narrow it down. If it still hangs, we can dig in further.
Also, there’s a known interaction between iTerm2 and the CLI on macOS Apple Silicon. If disabling MCP doesn’t help, try running agent from the standard Terminal.app and see if anything changes.
The difference is that cursor agent goes through the shell-shim IDE, which seems to hang at some point during initialization, while agent calls the CLI binary directly.
For now, use agent directly - it works the same way functionally. If anything changes or you need more help, just let me know.