Detailed Inline Diff Highlighting Missing After v2.0 Update

Hi everyone,

Before upgrading to Cursor 2.0, I used to have a very useful feature that showed inline diff highlights within changed lines. Not just the standard red/green line-level diff, but also darker red and darker green highlights inside the line to show exactly what was changed.

After updating to 2.0, this behavior disappeared. Now I only see the basic line-level diff, and I can’t find any setting or toggle to bring back the detailed inline highlighting. I checked the settings thoroughly and couldn’t find any related option.

This was an extremely important feature for my workflow, especially when reviewing agent edits, so losing it significantly slows me down.

Questions:

  1. Was this feature intentionally removed?
  2. If so, what was the reason?
  3. Will inline diff highlighting return in a future update?
  4. Is there any temporary workaround?

Thanks in advance :upside_down_face:

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Unfortunately, this feature was removed (see here: cursor.diffs.useCharacterLevelDiffs ). I’m hoping that they will bring it back though!!

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