Cursor IDE stuck on "Setting up workspace: Loading packages"

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

After I updated Cursor from version 3.1.17 to 3.2.11, it keeps getting stuck on several actions:

  1. Open a workspace: gets stuck on “Setting up workspace: Loading packages”
  2. Creating files: gets stuck on “Running ‘File Create’ participants…”
  3. Saving files: gets stuck on “Waiting for code actions from ‘Go’” (assuming I’m changing a .go file)

Cursor is technically usable, but practically unusable as it takes really long to save and edit files as well as requires manual cancelling of all actions by the IDE on these files.

Steps to Reproduce

The video recording showcases the bug reproduction.

  1. Open cursor with Prettier - Code formatter extension enabled.
  2. Create a main.go file
  3. Edit the main.go file

Note: I have no idea if this is actually some conflict with configurations, extensions, if it only happens with Go files, etc. This is my personal reproduction steps.

Fix (workaround):

  1. Disable Prettier - Code formatter
  2. Repeat steps 1-3 from reproduction.

Expected Behavior

All packages and extensions to be loaded.

Screenshots / Screen Recordings

Operating System

Linux

Version Information

Version: 3.2.16
VSCode Version: 1.105.1
Commit: 3e548838cf824b70851dd3ef27d0c6aae371b3f0
Date: 2026-04-28T21:07:47.682Z
Layout: editor
Build Type: Stable
Release Track: Default
Electron: 41.3.0
Chromium: 146.0.7680.188
Node.js: 24.15.0
V8: 14.6.202.33-electron.0
OS: Linux x64 6.19.14-arch1-1

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Additional Information

Issue started happening after I updated Cursor from version 3.1.17 to 3.2.11

This issue is specific to Cursor IDE, it does not happen in Visual Studio Code 1.117.0 (10c8e557c8b9f9ed0a87f61f1c9a44bde731c409, x64) with the same extension.

Workaround: disable prettier extension.

I have tried:

  1. Creating a new workspace
  2. Working outside of workspaces (opening folders individually)
  3. Downgrading Cursor IDE to 3.1.x
  4. Deleting extension caches:
$ rm -rf ~/.config/Cursor/CachedExtensions
$ rm -rf ~/.config/Cursor/CachedExtensionVSIXs
  1. Creating a new Cursor IDE profile entirely:
$ mv ~/.config/Cursor ~/.config/Cursor_bk

Does this stop you from using Cursor

No - Cursor works, but with this issue

Hey, thanks for the detailed report and the video. Being able to reproduce it with a specific extension helps a lot.

The root cause is that Prettier esbenp.prettier-vscode does not support Go, but it still registers as a participant for codeActionsOnSave and formatOnSave. When you save a .go file, Cursor waits for a response from Prettier, and Prettier hangs on an unsupported language, so save and file creation get blocked. The same thing can happen during workspace initialization, because the Go extension and Prettier end up fighting over the extension host. This looks familiar, there are a few similar threads:

You do not have to fully disable Prettier. You can limit it to specific languages using language specific overrides in settings.json:

"[go]": {
  "editor.defaultFormatter": "golang.go",
  "editor.formatOnSave": true,
  "editor.codeActionsOnSave": {
    "source.organizeImports": "explicit"
  }
},
"[javascript]": {
  "editor.defaultFormatter": "esbenp.prettier-vscode"
},
"[typescript]": {
  "editor.defaultFormatter": "esbenp.prettier-vscode"
}

This tells Cursor to use golang.go for Go files and not trigger Prettier on save.

We also noticed that VS Code 1.117 behaves better. Cursor’s extension host pipeline has a few extra roles, which makes these race conditions more noticeable. If you try the config above, let me know if it helped.