This seems to all be related to the saved chat history and the file system usage.
It seems that on Linux systems you can solve the issue by moving the history database from the filesystem to ram, but that option is not available on windows.
If this is true, this means that the whole problem is related to the chat history (I suspect trying to sync the correct historical context for chats, maybe using git?), and since Cursor seemed to work great beforehand, why not just add an option to turn it off? Because saving the whole project context history in RAM also sounds like a bad idea for a lot of situations/setups…