Failure to continue conversation after 25 tool call stop (Sonnet 3.7)

When using Sonnet 3.7 thinking, clicking “continue” after the auto-stop of 25 tool calls automatically results in “Connection failed. If the problem persists, please check your internet connection or VPN”. This is consistent every time I hit the 25 tool call limit.

The failure is SO quick, and all retries fail equally quickly, that I think Cursor is not even trying, or making a malformed request.

As a result I have to enter a prompt, which disturbs the context. Even if I only say “continue”, I see a bunch of tool calls as the model is recapping the prior conversation. This severely disrupts long breath work and Cursor performance.

example request ID: 5ccaeebe-62bb-4a62-8791-f2e377d43fbb

Mac OS 15.3.2. on MBP Pro, Cursor v.049.6