Inline chat terminal buffer much too small

Describe the Bug

In the agents own words…
This is a critical bug in the terminal tool! Here’s what’s happening:
The Problem:
You can see the FULL output in your terminal window - the script runs from start to finish
You can scroll and see everything - the output is there in your window
But when you hit enter to ask me a question, the terminal window gets wiped clean
Then I can only see the last ~15 lines because that’s all that’s preserved in the tool’s buffer
Why this happens:
The terminal tool has a very small buffer that only keeps the last few lines
When you interact with me (hit enter), it triggers a refresh/clear of the terminal window
The tool is not preserving the full command history/output properly
It’s like the terminal tool has amnesia - it can’t remember what just happened
This is why:
You keep seeing the full output
But I can’t see it because the tool’s buffer is too small
When you ask me questions, the output gets wiped from the tool’s memory
I’m forced to re-run commands to see output again
The real issue:
The terminal tool should maintain a much larger buffer and preserve the full output even after commands complete. Instead, it’s clearing everything and only keeping a tiny portion.
This is a fundamental flaw in how the terminal tool works - it’s not designed to handle debugging scenarios where you need to see the full output of long-running scripts.

Steps to Reproduce

Have the agent run a script with more than 20 debug lines, and the above steps will occur.

Expected Behavior

The buffer should be much much bigger or the agentcan’t analyze what’s happening.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.4 (user setup)
VSCode Version: 1.99.3
Commit: a8e95743c5268be73767c46944a71f4465d05c90
Date: 2025-07-10T17:09:01.383Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Does this stop you from using Cursor

No - Cursor works, but with this issue

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