Extension host is not running or is unresponsive

I am using Cursor to develop a mobile game. All was well until about two hours ago when further efforts resulted in this error Agent Execution Timed Out. The agent execution provider did not respond in time. This may indicate the extension host is not running or is unresponsive. Copy Request (23ab2ef2-f785-4b73-81e7-7831428d2546)

My host is MacBook Air MacOS Tahoe 26.5
I tried starting a new agent. no luck.
I tried restarting the app. no luck.

Version: 3.9.16 (Universal)
VS Code Extension API: 1.105.1
Commit: 042b3c1a4c53f2c3808067f519fbfc67b72cad80
Date: 2026-06-27T06:41:01.941Z
Layout: editor
Build Type: Stable
Release Track: Default
Electron: 40.10.3
Chromium: 144.0.7559.236
Node.js: 24.15.0
V8: 14.4.258.32-electron.0
xterm.js: 6.1.0-beta.256
OS: Darwin arm64 25.5.0

Cursor git notice after reboot laptop.
The git repository at “/Users/tim/Documents/workspace/swift” has too many active changes, only a subset of Git features will be enabled. I had too many PNG files so exceeded a 2GB limit. I shifted to Git LFS storage and all is well.