FIX: Cursor stuck "Thinking" / infinite loading due to proxy buffering

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Hi everyone,

If you are experiencing lagging, timed-out chats, or failing composer tools, you can easily verify if a network proxy is causing the issue. Here is how to run the built-in diagnostics and completely resolve the streaming roadblock:

1. Run the Diagnostics

Go to Settings > Browser & Network > Network Diagnostics > Run Diagnostics.

2. The Errors

If your network is actively blocking the connection, the diagnostics report will throw these specific errors:

  • Chat: Streaming responses are being buffered by a proxy in your network environment
  • Agent: Bidirectional streaming is not supported by the http2 proxy in your network environment

3. The Resolution

Cursor relies on real-time HTTP/2 streaming by default, which many corporate firewalls, VPNs, or network proxies aggressively buffer or block. To fix this, you need to manually force Cursor to fall back to standard HTTP/1.1 chunking:

  1. Open the Command Palette using Ctrl + Shift + P (Windows/Linux) or Cmd + Shift + P (Mac).

  2. Search for and select: Preferences: Open User Settings (JSON).

  3. Add a comma (,) to your last active setting line, and paste the following override rule right below it:

    json

    "cursor.general.disableHttp2": true

    Use code with caution.

  4. Save the file and completely restart Cursor (close the app and reopen it).

Doing this immediately forced the connection through for me and fixed both the Chat and Agent streaming errors. Hope this helps anyone else struggling behind a proxy!