Cursor v1.0 Import Resolution

Describe the Bug

After uppgradering to v1.0 I am getting Import resolution error on my React TS project. The project has no issues in VS Code. I can neither download 0.5 and downgrade since the link is broken. Seriously 2 days now and I can not do anything.

Steps to Reproduce

Open project.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.0.0 (user setup)
VSCode Version: 1.96.2
Commit: 53b99ce608cba35127ae3a050c1738a959750860
Date: 2025-06-04T19:44:25.253Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Additional Information

Getting error:
AccessDeniedAccess DeniedQ6ZJQXT9QMQX7JKESwE4tLjMvUgT9ydwmDG/MIkbRhG330Oufw3ZF5Xweqivlize1inmPM4DmtAygfMCmm3656xpNnoy0HQxG87+sA==