This specific Cannot find module cursor-socket issue was fixed in version 2.6.18. You’re on 2.6.12, so please download the latest version from https://cursor.com/download and check if the error is gone.
If the extension host still crashes after updating, try this:
- Cursor Settings (not VS Code settings) > Indexing & Docs > turn off Codebase Indexing and Index Repositories for Instant Grep (BETA)
- Restart Cursor
Another user with the same crash found that “Instant Grep (BETA)” was the cause on large projects: Extension host terminated unexpectedly always - #6 by facio313
Let me know how it goes after updating.