How to enable ability to work with console powershell inside cursor

Bug Reports
1

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

In latest version there is an issue that I can’t put a commands into agent’s powershell. Its blocker since it can’t propely switching between directories and morethen it’s open by default my home dir. This feature its useless and morethen put for me alot of complexity.
I want to rollback version but I don’t see any previous stable builds

Steps to Reproduce

Open directory with non ASII symbols.
Ask Agent to execute any script
Set-Location : �� 㤠���� ���� ���� “C:\Users****\Documents\My Projects\�?�?�?��>��� ����?����”, ⠪ ��� �� ��
�������.
C:\Users\diclo\AppData\Local\Temp\ps-script-36d84ef8-fb85-4347-b506-58e3b980fe0c.ps1:97 ����:1

  • Set-Location 'C:\Users\diclo\Documents\My Projects\�?�?�?��>��� ��� …
  •   + CategoryInfo          : ObjectNotFound: (C:\Users\diclo\...�� ����?����:String) [Set-Location], ItemNotFoundE 
 xception
  + FullyQualifiedErrorId : PathNotFound,Microsoft.PowerShell.Commands.SetLocationCommand

Expected Behavior

Working as previously

By default PowerShell console should be opened in project directory
There shouldn’t be an issue to execute any script from it

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.0.69 (user setup)
VSCode Version: 1.99.3
Commit: 63fcac100bd5d5749f2a98aa47d65f6eca61db30
Date: 2025-11-07T18:21:29.650Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Windows_NT x64 10.0.26200

Does this stop you from using Cursor

No - Cursor works, but with this issue

2

Hey, thanks for the report. This is a known issue where non-ASCII characters in paths break the Agent terminal. Here’s what helped:

Quick fix:

  • Ctrl+Shift+P → “Terminal: Kill All Terminals”
  • Fully close Cursor and restart
  • Ctrl+Shift+P → “Terminal: Create New Terminal”

This usually fixes the PowerShell encoding corruption.

Other options:

  • Move the project to a path without special characters
  • Similar issue with Korean characters was solved the same way: Cursor AI Korean Encoding Bug

Let me know if this helps!

3

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