Diff mode doesn't work anymore

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

I no longer see diffs after agent changes; have updated; have restarted etc. No longer seem them which makes interpreting the agent output more difficult.

The toolbar has this info, just doesn’t overlay the editor anymore for me.

Steps to Reproduce

Not sure, it started happening yesterday and now seems busted.

Expected Behavior

see diffs

Screenshots / Screen Recordings

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.1.50
VSCode Version: 1.105.1
Commit: 56f0a83df8e9eb48585fcc4858a9440db4cc7770
Date: 2025-12-06T23:39:52.834Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Darwin arm64 24.5.0

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor

Hey @philkuz

Thanks for reporting this. A fix is in progress and should be included in 2.2.0 or very soon after.