Issue with Gemini 2.5 Pro Preview (06-05) – "Model failed to call the tool with correct arguments"

Describe the Bug

Hi,

I’m experiencing a major issue with the Gemini 2.5 Pro Preview (06-05). The model is currently unusable, every time it tries to apply or modify something, I get the error:
“Model failed to call the tool with correct arguments.”

I’ve tried restarting the app, starting a new chat, and even reinstalling, but nothing helps. The only workaround is switching to a different model, but I specifically need Gemini, as it’s the only one capable of handling the tasks I’m working on.

I’ve been trying all day without success. Can you please look into this or advise on a fix?

Thanks,
Mikhail

Steps to Reproduce

N/A

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.1.7 (user setup)
VSCode Version: 1.96.2
Date: 2025-07-01T07:38:05.103Z
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 10.0.19045

Does this stop you from using Cursor

Yes - Cursor is unusable