In-app terminal is focused when using Claude Code extension

[joshuaiz1]

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

When typing in the Claude Code pane in Cursor, the terminal stays focused so newlines get added to the terminal when typing.

Steps to Reproduce

1. Open Claude Code pane using the Claude VS Code extension.
2. Type in a prompt or instructions; add a newline
3. Newlines get added to the terminal if open

Expected Behavior

When in the Claude Code pane, the terminal should lose focus.

Screenshots / Screen Recordings

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.7.38
VSCode Version: 1.99.3
Commit: fe5d1728063e86edeeda5bebd2c8e14bf4d0f960
Date: 2025-10-06T18:18:58.523Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Darwin arm64 25.0.0

Does this stop you from using Cursor

No - Cursor works, but with this issue

[deanrie]

Hey, thanks for the report. We’ll investigate it.