It looks like it’s not related to the update, but to the context size. Your screenshot shows 132 files in context, and in total that most likely exceeds the model’s context window. Cursor tries to automatically compress the context (summarization), but when it’s far over the limit, compression isn’t enough, the request ends up in a retry loop, and it fails with this error.
What to try:
Start a new chat and don’t add lots of files right away, let the agent pull what it needs.
Cut down the number of files in context a lot (132 is way too many for one request).
Check Skills: Cursor Settings > Rules, Skills, Subagents. If you have many, the names and descriptions of all skills are loaded into every request and eat up context before your message. Delete unused ones, and for rarely used ones add disable-model-invocation: true in the header so they only load when you manually call them via /skill-name.
This is known behavior, we’re tracking it, but I can’t share an ETA for a fix yet. Let me know if the workaround helped.
Hey,
Thanks for your quick reply.
That definitely solves the problem.
The suggestions you provided are also helpful, and I’ll keep them in mind for the future.
