This is a known bug. When Cursor restores a session that had a git diff tab open (like the “Working Tree” tab visible in your recording), it can hang indefinitely because the git model initialization has no timeout.
To get past this, try the following:
Force quit Cursor completely
Clear the workspace storage for the affected project. In Terminal, run:
Important: This will clear your session state (open tabs, layout) for all workspaces. If you want to target just the affected project, look inside that folder for a subfolder with a workspace.json referencing your project path.
Reopen Cursor and your project
To avoid triggering this again until a fix ships: close any git diff tabs (tabs showing “Working Tree” or “Index” diffs) before quitting Cursor.
You may also find this related thread helpful — other users reported the same issue with a similar workaround.
Our team is aware of this and working on a fix. Let me know if the workaround helps.