Same problem
Version: 1.7.17
VSCode Version: 1.99.3
Commit: 34881053400013f38e2354f1479c88c9067039a0
Date: 2025-09-29T03:10:26.099Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.6.0
It only helps to remove and install the old version - 1.5. But Cursor is updated automatically in the background
Can confirm, for me anything greater than 1.6.27 has the terminal issue. I’ve even gone up to the 1.8.x nightlies, still an issue. I had 1.7.11, 1.7.17 and 1.7.23 on for a moment, and all have the same issues.
Upgraded to 1.7.25 - issue remains
I downgraded to Version: 1.5.11 (Universal)
And then added "update.mode": "none" to the settings.json of Cursor. That prevents it from auto-updating.
Upgraded to 1.7.28 (Universal) and it seems to be working!!
Finally…
As @bencancode mentioned version 1.7.28 fixed the bug
2025.10.01-f05f473 issue NOT fixed for me. i’m running cursor-agent / linux/ fish shell
1.7.28 also did not fix the issue for me. Running on linux / zsh
Version: 1.7.28
VSCode Version: 1.99.3
Commit: adb0f9e3e4f184bba7f3fa6dbfd72ad0ebb8cfd0
Date: 2025-10-01T02:45:21.769Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Linux x64 6.8.0-85-generic
Ubuntu 22.04 Livepatch
Installed from .deb , works with zsh .
The previous version was uninstalled.