Extension host error, no fix with xcopy, windows 11, Network Diagnostics Chat canceled error

Hey, this is a known issue with the extension host on Windows. The cursor-socket folder is missing the out/ directory, so the extension host keeps crashing in a loop. The Chat error in Network Diagnostics is just a side effect of that crash.

You said xcopy didn’t help. Let’s make sure the command was run correctly. If you have a user setup install, the path should be:

cd "%LOCALAPPDATA%\Programs\cursor\resources\app\extensions\cursor-socket"
xcopy dist out\ /E /I

Open Command Prompt as administrator, run both commands, then fully close and reopen Cursor.

If the first command says path not found, Cursor might be installed as a system setup:

cd "C:\Program Files\cursor\resources\app\extensions\cursor-socket"
xcopy dist out\ /E /I

A couple more things:

  • Do you have any VPN software installed, even if it’s not running? Another user with the same issue fixed it by uninstalling their VPN: Extension host terminated unexpectedly no matter what i try
  • Can you paste the output of dir "%LOCALAPPDATA%\Programs\cursor\resources\app\extensions\cursor-socket\" so I can see what’s inside?

The team is aware of this bug. A fix is being prepared for the next update. Let me know how it goes.