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

Bug Reports
44

It is powerlevel10k in my case as well.
just disable it in vscode and works fine for me.

if [[ "$TERM_PROGRAM" != "vscode" ]]; then
    source /opt/homebrew/share/powerlevel10k/powerlevel10k.zsh-theme
    # To customize prompt, run `p10k configure` or edit ~/.p10k.zsh.
    [[ ! -f ~/.p10k.zsh ]] || source ~/.p10k.zsh
fi