Cursor agent window displays function_calls> and not filename

Display interaction with cursor agent window is broken. Instead of seeing colored displays for running terminal commands I see “function_calls>” and a file named function_calls is created in my repo.

within the window where code normally displays I see

serverless.yml I will update the S3 bucket configuration to . . .

worse, the files to be worked on themselves don’t get changed.

looks like a parsing error?

running Cursor on Mac

Version: 0.46.11
VSCode Version: 1.96.2
Commit: ae378be9dc2f5f1a6a1a220c6e25f9f03c8d4e10
Date: 2025-03-07T06:43:50.208Z
Electron: 32.2.6
Chromium: 128.0.6613.186
Node.js: 20.18.1
V8: 12.8.374.38-electron.0
OS: Darwin arm64 24.3.0

This very much stops me from using Cursor alas