A few quick questions:
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Can you share your exact Cursor version (Help > About > Copy Version)? “Latest version” can mean different things depending on the rollout wave.
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Were you able to try clearing
%APPDATA%\Cursor\User\workspaceStorage? I’m curious if that helps at least with files opening on startup.
About the bug where “files open as unsaved on startup”, this looks like a known issue that was fixed in 2.3.x:
But there were reports that it still happens on some setups. Your case is interesting because you have no git and no extensions, which makes debugging easier.
If the issue still happens after clearing workspaceStorage and on the latest version (currently 2.3.30+), let me know and I’ll pass it to the team with details about your environment.