Hi Eugen,
Two issues here. A couple of clarifying questions first to help diagnose the right path:
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Which agent mode are you using? When you look at the bottom of the chat panel, does it show “∞ Agent” (the newer mode) or just “Agent”? This matters because terminal command handling works differently between modes.
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What exactly was the stuck state? Was the agent showing the command as “running” with a spinning indicator, or was it frozen entirely (no UI response)? And was it showing a “Run” / “Reject” approval prompt that wasn’t responding, or had the command already been approved and executed?
About the “Rejected: Review cancelled or failed” when clicking STOP: This is the expected behavior of the current STOP button — it cancels the active tool call and the agent treats the cancellation as a rejection rather than a pause. A fix for a related issue in the newer agent mode was recently shipped, so updating to the latest nightly may improve this behavior. But to confirm: is your expectation that STOP should let you add more context and resume, rather than cancel the current operation?
For the stuck state itself: As a workaround worth trying (if you’re in the standard agent mode, not ∞ Agent):
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Go to Cursor Settings > Agents > Legacy Terminal and enable it
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Restart Cursor
Note: one user in a related thread reported a crash on first use of Legacy Terminal, but it worked after a second restart. Also, next time this happens, could you share a Request ID?