Cursor slows down significantly when I run scripts in powershell

I am running my project locally through powershell script which starts the typescript compilers in watch mode, firebase emulators and Vue.

As soon as I start the project Cursor slows down significantly, every single feature of application is affected e.g. file search, collapsing and opening file lists, saving files etc.
VScode is unaffected, and no impact observed on anything else.

I would appreciate some advice as I love the editor.