# Internal Error - chat\\agents unusable **URL:** \ **Category:** Bug Reports\ **Tags:** chat\ **Created:** [July 1, 2026, 11:40pm UTC](https://forum.cursor.com/t/internal-error-chat-agents-unusable/164597 "2026-07-01T23:40:45Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Kane\_Phipps](https://avatars.discourse-cdn.com/v4/letter/k/c68b51/32.png) [@Kane\_Phipps](https://forum.cursor.com/u/Kane_Phipps)\ **Post date:** [July 1, 2026, 11:40pm UTC](https://forum.cursor.com/t/internal-error-chat-agents-unusable/164597/1 "2026-07-01T23:40:45Z")
### Where does the bug appear (feature/product)? Cursor IDE ### Describe the Bug When attempting to interact with any model, an Internal Error is received. Currently using HTTP/1.0 behind a proxy. Using without a proxy set seems to work. Reverting to 3.8.24 seems to work ### Steps to Reproduce Use the agent ### Expected Behavior Chat\Agents work ### Operating System Windows 10/11 ### Version Information Version: 3.9.16 (user setup) VS Code Extension API: 1.105.1 Commit: 042b3c1a4c53f2c3808067f519fbfc67b72cad80 Date: 2026-06-27T06:41:01.941Z Layout: editor Build Type: Stable Release Track: Default Electron: 40.10.3 Chromium: 144.0.7559.236 Node.js: 24.15.0 V8: 14.4.258.32-electron.0 xterm.js: 6.1.0-beta.256 OS: Windows\_NT x64 10.0.26100 ### For AI issues: which model did you use? Any ### For AI issues: add Request ID with privacy disabled Request ID: 8e9c79c3-b147-4a3b-a437-114ca8940c56 [unknown] Network disconnected RetriableError: [unknown] Network disconnected at uAS (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12056:27795) at EMc (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12056:26530) at Fny (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12057:11929) at Object.classify (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12057:16434) at hAS (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12057:5824) at async Oqm.runWithSharedTurnRunner (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12057:15786) at async iH.runAgentLoop (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:24486:3041) at async Lkh.streamFromAgentBackend (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:24505:13862) at async Lkh.getAgentStreamResponse (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:24505:22888) at async IRe.submitChatMaybeAbortCurrent (vscode-file://vscode-app/c:/Users/phippska/AppData/Local/Programs/cursor/resources/app/out/vs/workbench/workbench.desktop.main.js:12142:2399) ### Additional Information This appears to have started with 3.9.16. Downgrading to 3.8.24 after purging appdata returns functionality to the IDE ### Does this stop you from using Cursor Yes - Cursor is unusable ---
**Author:** ![Tom\_Coustols](https://sea3.discourse-cdn.com/cursor1/user_avatar/forum.cursor.com/tom_coustols/32/97175_2.png) [@Tom\_Coustols](https://forum.cursor.com/u/Tom_Coustols)\ **Post date:** [July 2, 2026, 12:08am UTC](https://forum.cursor.com/t/internal-error-chat-agents-unusable/164597/5 "2026-07-02T00:08:47Z")
hey @Kane_Phipps, sorry you faced this issue, this is a well discussed topic, there was this thread covering it and also proposing solution to it, it’s long but really useful, you can check it there : > [@\[Bug\] always-local-singleton ignores http.proxy and server overrides cursor.general.disableHttp2](https://forum.cursor.com/t/bug-always-local-singleton-ignores-http-proxy-and-server-overrides-cursor-general-disablehttp2/164325): > > Description Since Cursor 3.9.16, AI model requests are handled by the always-local-singleton utility process. This process does not honor the IDE’s http.proxy or http.proxySupport settings — it makes direct connections using Node.js native http2.connect() / https.request() without a proxy agent. Additionally, even when cursor.general.disableHttp2 is explicitly set to true, a server-side value (lastServerHttp2DisabledValue) can silently override it back to false, forcing HTTP/2 connections that … ---
**Author:** ![Kane\_Phipps](https://avatars.discourse-cdn.com/v4/letter/k/c68b51/32.png) [@Kane\_Phipps](https://forum.cursor.com/u/Kane_Phipps)\ **Post date:** [July 2, 2026, 12:43am UTC](https://forum.cursor.com/t/internal-error-chat-agents-unusable/164597/7 "2026-07-02T00:43:17Z")
Hi there Tom, I have tried the settings provided by Mohit and there has been no change. It seems reverting has been the only thing to make an impact ```auto { "cursor.general.disableHttp2": true, "http.proxy": "http://127.0.0.1:7890", "http.proxyStrictSSL": false, "http.proxySupport": "override" } ``` Using 1.1 with `"cursor.general.disableHttp1SSE": true` has made no impact either. Normally I have to run with this setting as well because 1.1. does not play well wth our proxies. ---
**Author:** ![Tom\_Coustols](https://sea3.discourse-cdn.com/cursor1/user_avatar/forum.cursor.com/tom_coustols/32/97175_2.png) [@Tom\_Coustols](https://forum.cursor.com/u/Tom_Coustols)\ **Post date:** [July 2, 2026, 1:23am UTC](https://forum.cursor.com/t/internal-error-chat-agents-unusable/164597/8 "2026-07-02T01:23:37Z")
Noted, it is true that some people weren’t pleased either with the fix proposed, I guess team will have to look into it with your feedbacks too, let’s wait on their callout, maybe they will need more informations from you, oh, I just checked and it might be worth for you to check this other thread (thought I had shared this one at first, my apologies) : > [@Desktop model catalog filtered since June 29, but web works (same account)](https://forum.cursor.com/t/desktop-model-catalog-filtered-since-june-29-but-web-works-same-account/164383): > > Where does the bug appear (feature/product)? Cursor IDE Describe the Bug Since June 29, 2026, the desktop app only shows 5 models (Composer 2.5, Grok, Kimi, GLM). GPT and Claude models disappeared from the model picker. This is NOT a standard regional availability issue: WEB APP WORKS: On the Cursor web app (same account, same machine, same network), I can see and use the full model list: Opus 4.8, GPT-5.5, Sonnet 4.6, Codex 5.3. BILLING PROVES PRIOR DESKTOP ACCESS: My usage this bill… pinging them for reference : @mohitjain @deanrie ---
**Author:** ![mohitjain](https://sea3.discourse-cdn.com/cursor1/user_avatar/forum.cursor.com/mohitjain/32/100229_2.png) [@mohitjain](https://forum.cursor.com/u/mohitjain)\ **Post date:** [July 2, 2026, 12:14pm UTC](https://forum.cursor.com/t/internal-error-chat-agents-unusable/164597/10 "2026-07-02T12:14:03Z")
This is the same 3.9.x proxy regression others are hitting - Chat/Agent traffic on 3.9.16 stops going through the proxy, which is why you get Internal Error / Network disconnected behind it, and why 3.8.24 works. You’re right that those settings (`disableHttp2` / proxy override / `disableHttp1SSE`) didn’t help. That path has been flaky for some proxy setups, including HTTP/1.0 ones - same thread covers it: **[[Bug] always-local-singleton ignores http.proxy…](https://forum.cursor.com/t/bug-always-local-singleton-ignores-http-proxy-and-server-overrides-cursor-general-disablehttp2/164325)**. We’ve mitigated this on our side for Teams accounts. On **3.9.16** , fully quit Cursor ( **File → Exit** on Windows - not Reload Window), then reopen. That should restore the proxy-honoring path without needing those settings. If it still fails after a full quit/relaunch, stay on 3.8.24 for now and reply here so we can keep tracking your case.