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!