Hey, thanks for the report. This is a known issue with image generation after the 2.4 release. A few users have started seeing similar symptoms. Some get “Connection stalled” errors, and some get Python code instead of an actual image.
The team is aware. There’s no workaround yet. We’ll need to wait for a fix.
The main thread about this issue is here: Image Generation Connection Error in Cursor 2.4
As soon as there’s an update, I’ll post it there.