Hey, thanks for the report.
This is a known issue with Azure OpenAI and Agent Mode. Cursor sends requests in a format that isn’t fully compatible with the standard Azure OpenAI API, especially the tools format for file operations.
The team is working on improving BYOK support. We recently shipped a fix for a related issue.
Please try:
- Update to version 2.3.x. You’ll need to enable Early Access in Cursor settings > Beta.
- As a workaround, use Cursor’s built-in models for Agent Mode.
If the issue still happens after updating, let me know and I’ll collect more details for the team.
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