Hey, I just checked and it works for me with the same settings. Can you confirm if the issue is resolved? Also, just to clarify, do you have a Pro subscription?
I encountered the same issue, deepseek-chat do not work for cursor ask. I also cancelled all other models, only deepseek-chat left.
My cursor version is 0.50.5, os is win 10
I tried reinstalling cursor, and deleting all related files in my user folder (the AppData folder). It worked for a while, but failed again after several days (maybe something was written to app data folder?).