Revised solution with better naming:
Clearing the application support settings seemed to fix the issue.
cd ~/Library
cd “Application Support“
mv Cursor CursorBackup
The cursor settings are stored in the Application Support folder. There is some setting causing the Cursor to crash, and moving the Cursor file to CursorBackup essentially clears all the settings while keeping a backup of your original settings in CursorBackup.
The issue seemed similar to this bug Error: The window terminated unexpectedly (reason: 'crashed', code: '5')