Hey, thanks for the report.
This is a known issue - the old cursor-server process on the remote host is blocking the new installation.
Fix - run on the remote Linux host:
pkill -f .cursor-server
rm -rf ~/.cursor-server /tmp/cursor-remote-lock.* /tmp/cursor-server-*.tar.gz
If 30 seconds isn’t enough for your network, add this to Cursor Settings (JSON):
"remote.SSH.connectTimeout": 120
Similar issue resolved here: Every time after the upgrade, Cursor Remote-SSH times out
Let me know if this helps.