Devcontainers extension broken, can't create a dev container

[Dan_Goodman]

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

When ever I try to create a dev container in a folder I get:

No devcontainer.json files found in the selected folder /Users/dangoodman/code/diskann_testing. Please create a devcontainer.json file in the following path: /Users/dangoodman/code/diskann_testing/.devcontainer/devcontainer.json

Obviously… I’m trying to create the dev container in the first place. This was after it forced me to uninstall the microsoft one and use the anysphere one.

I’m using Dev Containers: Open folder in Container from the command palette (but none of the other options work either)

Steps to Reproduce

See above

Expected Behavior

It lets me create a dev container using the wizard UI as normal

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.6.45
VSCode Version: 1.99.3
Commit: 3ccce8f55d8cca49f6d28b491a844c699b8719a0
Date: 2025-09-22T18:22:38.013Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.6.0

[ravirahman]

Hi @Dan_Goodman, unfortunately our extension does not offer the list of preconfigured dev container templates. You’ll need to manually define your devcontainer.json. The agent should be able to help with this, though!

[Dan_Goodman]

Then why replace it for something that is objectively far worse than what we had before? Now I have to go look at docs to figure out what configuration options are possible, and police the AI into doing it right.

It must have been a licensing issue, because this is a clear (and incredibly frustrating) regression in the UX. That would make sense considering the wave of MS→Anysphere extension notifications I got.