Cursor agent mode - when running terminal commands often hangs up the terminal, requiring a click to pop it out in order to continue commands

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Checked.

:lady_beetle: Provide a clear description of the bug
When I’m running Cursor Agent Mode with Claude 3.7, and I also have MCPs . This is related to the terminal commands that it runs. I have YOLO mode on as well. When it runs certain terminal commands, it hangs with a loading spinner as if it’s waiting for something, and it will only continue if I click “Pop out terminal” and then it runs another terminal command and it hangs again. And I have YOLO mode on, so it should just run automatically without me having to pop out the terminal.

:counterclockwise_arrows_button: Explain how to reproduce the bug (if known)
You just run a prompt that requires terminal commands, like, I don’t know, catting a file.
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The command completes, and then it hangs.
:laptop: Tell us your operating system and your Cursor version (e.g., Windows, 0.x.x).
Mac OS operating system latest version, and cursor is on the latest version 0.46.9
:prohibited: Tell us if the issue stops you from using Cursor.
Now it’s just tedious having to click “Pop Out” terminal. I’d like it to run all the commands without me having to interrupt. I just wanna vibe code.

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I’m having the same issue, however I have a “Cancel and resume” button. It kicks it back into gear but it’s annoying. For me it was working fine most of the day and then started hanging. Mostly happens with cargo commands (using Rust) like cargo test.

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Having the same issue, it is extremely annoying: [BUG] Terminal tool gets stuck after exit code