Hey, thanks for the report. I see the screenshot with the “Running ‘File Delete’ participants…” dialog.
This “participants” mechanism is how extensions hook into file operations. If one of them hangs, it blocks the whole operation. The most likely cause is an extension that isn’t finishing its file event handler.
Can you try this to narrow it down?
Launch Cursor from the command line with cursor --disable-extensions and check if file operations work normally.
If they do, turn extensions back on and disable them one by one to find the culprit.
Also worth trying: press Cmd + Shift + P, then run Developer: Open Process Explorer while the dialog is stuck. Check if extensionHost is spiking CPU. That would confirm it’s an extension issue.
Glad you found it! For any user who runs into this later, cursor --disable-extensions is a quick way to check if an extension is causing the issue. Then you can re-enable them one by one to figure out which one it is.