Hey, thanks for the detailed report. The ProcMon log and repro steps are spot on. This is a known bug with checkpoint and local-history restore. When you open older Agent chats, Cursor replays the saved state and overwrites files on disk, which updates mtime, normalizes CRLF and LF, and can corrupt non-ASCII characters. In your case it is Hebrew, and in other reports it is Portuguese and Japanese. We’ve logged the issue on our side, but there’s no ETA for a fix yet.
Main thread with discussion and workarounds: Cursor creates phantom unsaved changes on every restart (requires discarding multiple files). Your findings, deleting state.vscdb and anysphere.cursor-commits from globalStorage, match what’s working for other users. The downside is that once you restore old chats, it comes back. That’s a current limitation of the workaround.
The Hebrew corruption detail is super helpful. I’ll add it to the existing report since the encoding side is another part of the problem. If we have an update on the fix, we’ll reply in that thread.