Discarding untracked files results in error on Windows

Describe the Bug

Attempting to discard untracked files results in an error on Windows and prevents the changes from being discarded.

Steps to Reproduce

  1. Create a new file in a project that uses git.
  2. Discard all changes → acknowledge prompt.

Expected Behavior

All changes should be discarded, untracked files should get deleted.
(This has always worked in native vscode and still does in 1.102.1.)

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.4 (user setup)
VSCode Version: 1.99.3
Commit: a8e95743c5268be73767c46944a71f4465d05c90
Date: 2025-07-10T17:09:01.383Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Additional Information

This is all that’s in the git log:

2025-07-21 18:40:49.310 [info] > git config --get commit.template [45ms]
2025-07-21 18:40:49.321 [info] > git for-each-ref --format=%(refname)%00%(upstream:short)%00%(objectname)%00%(upstream:track)%00%(upstream:remotename)%00%(upstream:remoteref) --ignore-case refs/heads/master refs/remotes/master [53ms]
2025-07-21 18:40:49.383 [info] > git status -z -uall [59ms]
2025-07-21 18:40:49.384 [info] > git for-each-ref --sort -committerdate --format %(refname)%00%(objectname)%00%(*objectname) [54ms]

Does this stop you from using Cursor

No - Cursor works, but with this issue

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