I just updated Cursor to version 2.4.14, and I am having this problem all of a sudden. Still has the issue with extensions disabled.
Edit: See Solution Below!
Version: 2.4.14
VSCode Version: 1.105.1
Commit: f46acd1f4f453807331ae59ea4c94fabd2b40640
Date: 2026-01-22T02:35:05.148Z
Build Type: Stable
Release Track: Default
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Darwin x64 24.1.0
You can download version 2.3 from their website.
https://api2.cursor.sh/updates/download/golden/darwin-arm64/cursor/2.3
I fixed it by downgrading back to the version 2.3.41 installed via brew.
https://formulae.brew.sh/cask/cursor
[$]> brew install --cask cursor