Cursor_agent is ignoring mcp authentication headers form the mcp.json file

Where does the bug appear (feature/product)?

Cursor CLI

Describe the Bug

This in the CLI:-

$ cursor-agent mcp list
Failed to list MCP servers: fetch failed

Shows this in my logs:-

2025-09-13 17:09:48.526 [PID:7232|TID:37800] SSE Message to ('127.0.0.1', 60199) > : ping - 2025-09-13T17:09:48.526619+00:00\r\n\r\n 
2025-09-13 17:09:52.635 [PID:7232|TID:42852] SSE Message to ('127.0.0.1', 60182) > : ping - 2025-09-13T17:09:52.635681+00:00\r\n\r\n 
2025-09-13 17:10:00.960 [PID:7232|TID:42616] Connect from ('127.0.0.1', 60297) 
2025-09-13 17:10:00.961 [PID:7232|TID:38780] Request from ('127.0.0.1', 60297) < {'Method': 'POST', 'Path': '/sse', 'Headers': {'host': '127-0-0-1.local.aurafriday.com:31173', 'connection': 'keep-alive', 'content-type': 'application/json', 'accept': 'application/json, text/event-stream', 'accept-language': '*', 'sec-fetch-mode': 'cors', 'user-agent': 'node', 'accept-encoding': 'b
r, gzip, deflate', 'content-length': '155'}, 'Body length': 155} Body: {"method":"initialize","params":{"protocolVersion":"2025-06-18","capabilities":{},"clientInfo":{"name":"Cursor","version":"1.0.0"}},"jsonrpc":"2.0","id":0}
2025-09-13 17:10:00.962 [PID:7232|TID:38780] Auth No valid authentication provided (Basic, Bearer, or URL parameters) from IP: 127.0.0.1
2025-09-13 17:10:00.962 [PID:7232|TID:38780] RESPonse  to ('127.0.0.1', 60297) > b'HTTP/1.1 401 Unauthorized\r\nContent-Type: text/plain\r\nContent-Length: 13\r\nConnection: close\r\nAccess-Control-Allow-Origin: null\r\nAccess-Control-Allow-Methods: GET, POST, PUT, DELETE, PATCH, OPTIONS\r\nAccess-Control-Allow-Headers: *\r\nAccess-Control-Allow-Credentials: true\r\nAccess-Contro
l-Max-Age: 86400\r\nWWW-Authenticate: Basic realm="RagTag Memory System"\r\nContent-Type: text/plain; charset=utf-8\r\nCache-Control: no-store\r\nContent-Length: 13\r\n\r\nAccess Denied'
2025-09-13 17:10:00.967 [PID:7232|TID:38780] Session Initiated graceful socket shutdown (FIN sent)
2025-09-13 17:10:00.967 [PID:7232|TID:38780] Session Client socket closed

With this setting (not my real API key shown below) which works fine in the cursor IDE:

{
  "mcpServers": {
    "ragtag_sse": {
      "url": "https://127-0-0-1.local.aurafriday.com:31173/sse",
      "headers": {
        "Authorization": "Bearer 11111111-1111-4111-1111-1111111111111",
        "Content-Type": "application/json"
      }
    }
  }
}

Steps to Reproduce

description says all you need

Expected Behavior

should honour mcp settings same as the IDE does

Operating System

Linux

Current Cursor Version (Menu → About Cursor → Copy)

cursor-agent/versions/2025.09.12-4852336

Does this stop you from using Cursor

No - Cursor works, but with this issue

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