Cursor stopped recognising git repositories after an update

This is a confirmed bug in the Glass layout’s git integration. Cursor’s source control panel spawns certain git commands without properly passing the working directory, so git can’t find the repository even though it’s valid. The underlying VS Code git extension still works correctly, which is why the agent can interact with git.

A couple of workarounds while we work on a fix:

  1. Reload Window (Ctrl+Shift+P > Developer: Reload Window) sometimes re-establishes the connection

  2. Switch to Editor layout for git operations: Ctrl+Shift+P > Open Editor Window. The Editor Window’s Source Control panel works correctly for the same repos.

Merging this into a related thread where another user has documented the same root cause in detail: Agents Window: GitProvider spawns git without CWD. Our team is actively investigating this.