Cursor and GPT 5.2 On Azure not working

Support Bug Reports
,
1

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug
When using a costum Azure OpenAI key to a GPT 5.2 on Azure, the LLM works fine until it needs to make code edits.

Then it writes the error: ”Connection failed. If the problem persists, please check your internet connection or VPN”

Steps to Reproduce
How can you reproduce this bug? We have a much better chance at fixing issues if we can reproduce them!

  1. Deploy an gpt 5.2 on Azure
  2. Use Azure OpenAI Costum key in Cursor
  3. Write a prompt to edit a file

Expected Behavior
What is meant to happen here that isn’t working correctly?

The chat and editing should work

Screenshots / Screen Recordings
If applicable, attach images or videos (.jpg, .png, .gif, .mp4, .mov)

image
image850×204 7.25 KB

Operating System

  • Macosx

Version Information

  • For Cursor IDE: Menu → About Cursor → Copy

  • For Cursor CLI: Run agent about in your terminal

Cursor info:

Version: 2.3.29

VSCode Version: 1.105.1

Commit: 4ca9b38c6c97d4243bf0c61e51426667cb964bd0

Date: 2026-01-08T00:34:49.798Z (2 wks ago)

Electron: 37.7.0

For AI issues: which model did you use?
Model name (e.g., Sonnet 4, Tab…)

gpt-5.2

For AI issues: add Request ID with privacy disabled
Request ID: a8aac1a6-9ccc-4241-92df-c4f1fcbb4f6b

Additional Information
Add any other context about the problem here.

Does this stop you from using Cursor?

  • Yes - Cursor is unusable
2

Hi there!

We detected that this may be a bug report, so we’ve moved your post to the Bug Reports category.

To help us investigate and fix this faster, could you edit your original post to include the details from the template below?

Bug Report Template - Click to expand

Where does the bug appear (feature/product)?

  • Cursor IDE
  • Cursor CLI
  • Background Agent (GitHub, Slack, Web, Linear)
  • BugBot
  • Somewhere else…

Describe the Bug
A clear and concise description of what the bug is.

Steps to Reproduce
How can you reproduce this bug? We have a much better chance at fixing issues if we can reproduce them!

  1. …
  2. …
  3. …

Expected Behavior
What is meant to happen here that isn’t working correctly?

Screenshots / Screen Recordings
If applicable, attach images or videos (.jpg, .png, .gif, .mp4, .mov)

Operating System

  • Windows 10/11
  • MacOS
  • Linux

Version Information

  • For Cursor IDE: Menu → About Cursor → Copy
  • For Cursor CLI: Run agent about in your terminal
IDE:
Version: 2.xx.x
VSCode Version: 1.105.1
Commit: ......

CLI:
CLI Version 2026.01.17-d239e66

For AI issues: which model did you use?
Model name (e.g., Sonnet 4, Tab…)

For AI issues: add Request ID with privacy disabled
Request ID: f9a7046a-279b-47e5-ab48-6e8dc12daba1
For Background Agent issues, also post the ID: bc-…

Additional Information
Add any other context about the problem here.

Does this stop you from using Cursor?

  • Yes - Cursor is unusable
  • Sometimes - I can sometimes use Cursor
  • No - Cursor works, but with this issue

The more details you provide, the easier it is for us to reproduce and fix the issue. Thanks!

4

Hey, thanks for the report.

This is a known issue with Azure OpenAI BYOK and code editing features. Cursor sends requests in a format that isn’t compatible with the Azure OpenAI API. It uses the wrong tools schema for file operations. Chat works, but applying code changes fails with this error.

Related threads with the same issue:

The team is aware and is working on improving BYOK support. A few related fixes have already shipped, but the issue still affects GPT-5.2.

I’ll pass this to the team.

5

Thanks! Is there any Azure models that are fully supported at the moment?

6

Unfortunately, right now no Azure model works fully out of the box for code actions (Apply or Agent Mode) via BYOK.

Current situation:

  • Older models (GPT-4o, GPT-4.1): they use the Completions API, but there are still issues with the tools schema
  • Newer models (GPT-5, GPT-5.2, GPT-5 mini): they use the Responses API, which Cursor doesn’t support properly for Azure

The team is aware of the issue, and some fixes have already shipped, but the problem still remains for GPT-5.2 and other new models.

Workaround:
There’s a community solution from @gabrii, a proxy service that adapts Azure GPT-5 to work with Cursor: GitHub - gabrii/Cursor-Azure-GPT-5: A service that allows Cursor to use Azure GPT-5 deployments.

It works for GPT-5 and GPT-5 mini, and it requires a Pro or Business subscription for BYOK. Setup steps are in the README.

Let me know if you try the proxy and have any questions.

7

@deanrie I don’t know if you understand but not fixing this is directly pushing people into copilot. A lot of teams have Azure resources and budgets there - not in custom SaaSes.

I’d be highly appriciated to assign it higher priority.

1 Like