I just took another stab at resolving this and it seems to have worked:
I saw a lot of old python versions in my ~/.pyenv, so i went and deleted everything older than 3.11 and now it’s all working nicely and no longer stuck on “Discovering Python interpreters”
I never directly use these pyenv versions in Cursor/VSCode (i always use a venv or direnv), so was surprised this worked, but it did!