Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
After cursor latest update 8.10.2026 all projects’ main agents show “Agent encountered an error” popup, retrying or sending a new reques show the same popup as well. Creating a new agent within a project clears and sending a message does not show an error, but the chat itself disappears.
Steps to Reproduce
On MacOS or in Web:
- open any project started on a MacOS IDE before the latest update
- send a new message to the main agent
- “Agent encountered an error” popup appears
Expected Behavior
All projects created before the latest update work as expected
Screenshots / Screen Recordings
Operating System
MacOS
Version Information
Version: 3.23.23 (Universal)
VS Code Extension API: 1.128.0
Commit: 2dac2428994fe34f12658d9ecad1541b98db2c00
Date: 2026-10-05T01:43:43.807Z
Layout: Agent Window
Build Type: Stable
Release Track: Default
Electron: 42.10.0
Chromium: 148.0.7778.280
Node.js: 24.18.1
V8: 14.8.178.38-electron.0
xterm.js: 6.1.0-beta.291
OS: Darwin arm64 23.4.0
Does this stop you from using Cursor
Yes - Cursor is unusable