I had the same issue. By commenting out my .bash_profile contents I made it work again. This was my .bash_profile.
export NVM_DIR="$HOME/.nvm"
[ -s "/opt/homebrew/opt/nvm/nvm.sh" ] && \. "/opt/homebrew/opt/nvm/nvm.sh" # This loads nvm
[ -s "/opt/homebrew/opt/nvm/etc/bash_completion.d/nvm" ] && \. "/opt/homebrew/opt/nvm/etc/bash_completion.d/nvm" # This loads nvm bash_completion
# Homebrew
eval "$(/opt/homebrew/bin/brew shellenv)"
# Homebrew: Python
export PATH="/opt/homebrew/opt/python/libexec/bin:$PATH"
export CPPFLAGS="-I$(brew --prefix libheif)/include" && export LDFLAGS="-L$(brew --prefix libheif)/lib"
. "$HOME/.local/bin/env"
. "$HOME/.cargo/env"
export PATH="/opt/homebrew/opt/libpq/bin:$PATH"
can’t tell you which command it was that broke cursor but maybe it helps your dev team.