edit_file fails to create new files in Agent Mode – causes infinite loop with AI workflows

Bug Reports
1

Describe the Bug

This issue has already been reported via email and was escalated to a teammate by Sam from the Cursor team. I’m now posting here as advised, in case other users are experiencing the same issue or have discovered workarounds.

When the AI agent in Agent Mode tries to create a new file using the edit_file command (e.g. edit_file samplefix.py), the file is not created. The AI continues as if it succeeded, but no file appears, and no error is shown. This causes the AI to enter an infinite loop of failed attempts.

Steps to Reproduce

  1. Use Cursor in Agent Mode.
  2. Prompt the AI to create and edit a new file, e.g., “Please create and implement samplefix.py.”
  3. The AI invokes edit_file samplefix.py, but the file is never created.
  4. The AI believes the file exists and continues trying to edit it, causing an infinite loop.

Expected Behavior

The AI should successfully create a new file when calling edit_file <filename>, and the file should appear in the workspace. If the command fails, an error or feedback should be returned so the AI can respond accordingly.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

バージョン: 1.1.5 (user setup)
コミット: 1.96.2
日付: ef5eeb47a684b4c217dfaf0463aa7ea952f8ab90
Electron: 2025-06-21T05:31:17.701Z
ElectronBuildId: 34.5.1
Chromium: undefined
Node.js: 132.0.6834.210
V8: 20.19.0
OS: 13.2.152.41-electron.0

Additional Information

This report follows an email exchange with Sam from the Cursor support team. He confirmed the issue and mentioned that a teammate is currently investigating it. He also suggested sharing the details here in case other users have encountered the same problem or found workarounds.

I use Cursor in a VIVEcoding style, where the AI is fully responsible for generating and editing all files autonomously.

To work around the issue, I’ve trained the AI to first run the following PowerShell command (since I’m on Windows):

New-Item -Path “samplefix.py” -ItemType File -Force

After that, the AI proceeds with edit_file samplefix.py, and the file is correctly updated. However, this workaround increases token usage and adds unnecessary complexity to the workflow.

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor