That chat was actually running on Claude Opus 5.5 (Max mode), not Grok 4.7 High. Claude and other third-party models draw from your “Other Models” usage, and that ran out partway through the task, so the request stopped.
When that happens, Cursor tries to switch the chat to Grok 4.6 automatically so the work can continue. You have Grok 4.6 turned off in your model settings, so Cursor couldn’t make that switch and showed “Fallback Model Disabled” instead. We know the message doesn’t explain the real reason well, and I’ve passed that on.
To keep going, any of these will work:
Switch that chat to Grok 4.7 High (or Auto / Composer) in the model picker. These use your Cursor Models usage, which still has room.
Turn Grok 4.6 back on in Cursor Settings > Models, so the automatic switch can go through next time.
If you want to keep using Claude after the limit, enable on-demand usage under Spending on cursor.com/dashboard.