How can I prevent cursor from making the same mistakes when executing PowerShell?

I had some weird issues with PowerShell which I think I have now fixed:

Issue

AI Agents in Cursor were unable to capture output from PowerShell commands, resulting in exit code 1 and no visible output, despite commands executing successfully when run manually.

Environment

  • Windows 11 Pro N (Version 10.0.26100)
  • PowerShell 7.5.0 (installed via WinGet)
  • Cursor AI IDE

Solution Steps

  1. Verify PowerShell Installations

    • Confirmed Windows PowerShell 5.1 at: C:\WINDOWS\System32\WindowsPowerShell\v1.0\powershell.exe
    • Confirmed PowerShell 7.5.0 at: C:\Users\<removed>\AppData\Local\Microsoft\WinGet\Links\pwsh.exe
  2. Configure Cursor Settings

    • Open Cursor Settings (JSON)
    • Location: %APPDATA%\Cursor\User\settings.json
    • Add PowerShell 7 profile and set as default:
    {
        "terminal.integrated.profiles.windows": {
            "PowerShell 7": {
                "path": "C:\\Users\\<removed>\AppData\\Local\\Microsoft\\WinGet\\Links\\pwsh.exe",
                "icon": "terminal-powershell",
                "args": []
            }
        },
        "terminal.integrated.defaultProfile.windows": "PowerShell 7"
    }
    
  3. Terminal Preview Setting

    • Disabled “Use preview box for terminal Ctrl+K” in Cursor settings
    • This setting affects how responses are streamed to the shell
  4. Restart Required

    • Close all terminal instances
    • Restart Cursor to apply changes

Verification

After implementing these changes:

  • PowerShell 7.5.0 runs as the default shell
  • AI Agents can successfully:
    • Execute PowerShell commands
    • Capture command output
    • Use advanced PowerShell 7 features
    • Process pipeline operations
    • Handle object manipulation and formatting

Notes

  • The fix ensures AI Agents can fully interact with PowerShell 7
  • Commands now return proper exit codes and visible output
  • Terminal integration supports all PowerShell features including advanced formatting and object manipulation
  • Some PSReadLine diagnostic messages may appear but don’t affect functionality

P.S. there are a lot of options in Settings when you search for terminal.integrated - I think that others with different issues might find something in there to help

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