This is a known issue with in-app updates on macOS 27, and the team is tracking it. It usually happens when Cursor isn’t allowed to run in the background, because macOS then stops the installer as soon as Cursor quits. Could you try these steps?
Open Cursor and check Cursor → About Cursor. If it already shows 3.23.12, you’re all set and can ignore the rest.
Quit Cursor completely (Cursor → Quit Cursor, or Cmd+Q).
Open System Settings → General → Login Items & Extensions.
Under “Allow in the Background”, find Cursor and turn it on.
Open Terminal and run this command (it resets the updater’s retry counter after earlier failed attempts):
Open Cursor again, wait for the Update button to appear, and click it.
Let me know whether Cursor was turned off in step 4, and what About Cursor shows after the update. If it still fails, downloading the latest version from Cursor · Download and dragging it into Applications will get you updated in the meantime.