Cursor agent not picking up mcp.json from project - issue returned

Where does the bug appear (feature/product)?

Cursor CLI

Describe the Bug

Cursor agent not picking up mcp.json from project

This is a return of Cursor agent not picking up mcp.json from project

Cursor CLI v 2026.04.08-a41fba1 had this solved. That version CLI reliably detects ./.cursor/mcp.json file (per project file relative to CWD)

Cursor CLI v 2026.06.15-18-00-12-6f5a2cf is broken again. This version CLI does NOT auto-detect the ./.cursor/mcp.json file (per project file, relative to current working dir).

in 2026.06.15-18-00-12-6f5a2cf /mcp list shows no servers and it does not ask how to initiate the agent with or without MCP on the start, unlike 2026.04.08-a41fba1 which does.

Contents of ./.cursor/mcp.json :

{
  "mcpServers": {
    "data_catalog": {
      "type": "streamable-http",
      "url": "http://amundsenmetadata:5000/mcp"
    }
  }
}

Steps to Reproduce

see description

Expected Behavior

that newer versions of Cursor CLI agent work as well as older versions and detect project-level MCP json file.

Operating System

Linux

Version Information

Cursor CLI v 2026.04.08-a41fba1 had this solved. That version CLI reliably detects ./.cursor/mcp.json file (per project file relative to CWD)

Cursor CLI v 2026.06.15-18-00-12-6f5a2cf is broken again. This version CLI does NOT auto-detect the ./.cursor/mcp.json file (per project file, relative to current working dir).

Does this stop you from using Cursor

Yes - Cursor is unusable

Hi @Daniel_Dotsenko!

Could you try removing this line (or changing type to http) and see if if it works?

Yes, changing

{
  "mcpServers": {
    "data-catalog": {
      "type": "streamable-http",
      "url": "http://amundsenmetadata:5000/mcp"
    }
  }
}

to

{
  "mcpServers": {
    "data-catalog": {
      "type": "http",
      "url": "http://amundsenmetadata:5000/mcp"
    }
  }
}

I am guessing the spec changed in the last half a year? (streamable-http as value was recommended by AI ~4 months ago).

I cannot find a published spec for this. I bet there are others with similar older config. Would be nice if Cursor would publish the schema with valid values for the mcp.json file content

@Daniel_Dotsenko We should most likely just update the CLI to discard the type, or accept streamable-http as an alias for http! We have a bug ticket open for this.