Cursor silently pausing on every agent run

Thanks, the log helped. The OTLPExporterError: "Trace spans collection is not enabled for this user" noise is telemetry the server rejects because of Privacy Mode, it is not the cause of the freeze. Please keep Privacy Mode as it is, I get that it is a corporate requirement.

The useful signal in your log is this line:

[agent_exec] [watchdog, LocalReadExecutor] permissionsService.shouldBlockRead still not completed after 3000ms

So the freeze happens when the agent checks permission to read a file. That matches your report, the pause happens during GREP or file search. Also, later it says Extension host became UNRESPONSIVE. The fact that it reproduces with --disable-extensions is also helpful, we can rule out extensions.

To narrow it down, can you please answer:

  1. Where is the workspace located, local disk, network share, UNC path (\\server\...), or a mounted network folder? In corporate setups this is often a factor.
  2. Rough repo size (file count or GB)?
  3. Does the project have a .cursorignore or a very large .gitignore?
  4. If you open a small local test project (a couple files on C:) and run the agent with GREP there, does it also freeze or does it work fine?

I can’t give an ETA for a fix yet, but I’ll post an update in the thread as soon as I have one.