Indentation errors when restoring from previous checkpoints

Describe the Bug

Sometimes, when restoring from a previous checkpoint the indentation is not properly restored, with some seemingly random indents being inserted.
This trashed as 2500 lines of code file for me, which was not fun to debug.

Steps to Reproduce

Make an edit, restore from previous checkpoint.

Operating System

Linux

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.1
VSCode Version: 1.99.3
Commit: 031e7e0ff1e2eda9c1a0f5df67d44053b059c5d0
Date: 2025-07-03T06:13:13.763Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Linux x64 6.11.0-29-generic

Additional Information

This might be affecting big files

Does this stop you from using Cursor

No - Cursor works, but with this issue