+1 Similar issues on both composer and cmd+l chat. 0.40.x update has cut down cursors utility. Had to downgrade to 0.39.6.
Another thing I noticed with python. Pylint recommendations are significantly slower (take time to load once I open the file) on the 0.40.x
Ref - [0.40.x] New Chat UX broken
Anyone looking to downgrade [0.39.6]
Mac ARM - https://download.todesktop.com/230313mzl4w4u92/Cursor%200.39.6%20-%20Build%20240819ih4ta2fye-arm64-mac.zip
Windows - https://download.todesktop.com/230313mzl4w4u92/Cursor%20Setup%200.39.6%20-%20Build%20240819ih4ta2fye-x64.exe