Hey, thanks a lot for the detailed write-up and the solution. This will really help other users who run into the same issue.
Yep, you’re right. The AI Chat panel inherits color settings from plaintext language-based settings, which can cause readability problems with custom workbench.colorCustomizations.
If you’re interested, there’s a related feature request to allow independent chat color settings: Feature Request: Independent Color Configuration for Cursor Chat Window
Glad you got it working.