Frequent timeouts and Internal Server Error when using chat (past few days)

Where does the bug appear (feature/product)?
Cursor IDE

Describe the Bug
For the past couple of days, I’ve been experiencing frequent timeouts when asking questions in chat — requests either hang for a long time with no response, or fail with the following error:

“Internal Error: An unexpected error occurred on our servers. Please try again, or contact support if the issue persists.”

Request ID: aeaaea8a-f4ff-40b9-bb72-1edf96e40967

I’ve already tried the following on my end to rule out local network issues, but the problem still occurs intermittently:

  • Confirmed I have a stable proxy connection (running in global mode, verified with browser access)
  • Restarted Cursor and cleared cache
  • Tried switching models

This is happening consistently enough that I suspect it may be related to server-side instability rather than my local setup.

Steps to Reproduce

  1. Open Cursor IDE
  2. Send a normal message in chat (Agent mode)
  3. Request either times out or returns the Internal Error shown above

Expected Behavior
Chat should return a response normally without timing out or throwing a server error.

Operating System
Windows

Version Information

Request ID: 268c8f2e-0dc4-405e-8262-e77f84db53db
[internal] Failed to establish a socket connection to proxies: PROXY 127.0.0.1:7890
RetriableError: [internal] Failed to establish a socket connection to proxies: PROXY 127.0.0.1:7890
at hdf (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9066:9690)
at Wqi (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9066:8425)
at wcp (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:11962)
at Object.classify (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:16467)
at gdf (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:5856)
at async fWo.runWithSharedTurnRunner (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:15819)
at async xz.runAgentLoop (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:20459:3067)
at async lba.streamFromAgentBackend (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:20487:14009)
at async lba.getAgentStreamResponse (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:20487:23432)
at async VIe.submitChatMaybeAbortCurrent (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9229:2399)

Request ID: 087b3cfb-1933-4810-abca-c53e5d2e37f8
[internal] Failed to establish a socket connection to proxies: PROXY 127.0.0.1:7890
RetriableError: [internal] Failed to establish a socket connection to proxies: PROXY 127.0.0.1:7890
at hdf (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9066:9690)
at Wqi (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9066:8425)
at wcp (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:11962)
at Object.classify (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:16467)
at gdf (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:5856)
at async fWo.runWithSharedTurnRunner (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9067:15819)
at async xz.runAgentLoop (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:20459:3067)
at async lba.streamFromAgentBackend (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:20487:14009)
at async lba.getAgentStreamResponse (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:20487:23432)
at async VIe.submitChatMaybeAbortCurrent (vscode-file://vscode-app/c:/Users/cumtchw/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:9229:2399)

Hey @cumtchw! Those errors are happening on your side before the request reaches us - Cursor is trying to route through a proxy at 127.0.0.1:7890 (Clash’s default port) and nothing’s answering there at that moment, so the request never leaves your machine. The “on our servers” wording is misleading here, sorry about that.

Try, in order:

  1. Make sure your proxy client is actually running and listening on 7890 whenever you use Cursor. A proxy that works in the browser can still drop or switch ports mid-session, which matches the intermittent failures.
  2. For the long hangs: Cursor Settings > Network > HTTP Compatibility Mode → HTTP/1.1, then fully quit and reopen Cursor.
  3. Update Cursor (you’re on 3.10.20, a few months old) - several networking fixes have shipped since.

If it still fails, run Cursor Settings > Network > Run Diagnostics and share the output plus a fresh Request ID. Network troubleshooting