Thanks for the detailed report and request ID. This is a known issue on our side, specific to using Fable 5 through AWS Bedrock - it’s not your AWS setup or data retention config. We’re aware of it.
In the meantime you can keep using Fable 5 through Cursor’s standard model picker (with Bedrock toggled off for those requests), and continue using Bedrock for the models that work today: Opus, Sonnet, and Haiku.
A few others have hit the same thing in this thread - worth following there for updates.