Thanks for the clarification. Interesting find with the third command - this helps localize the issue.
Your case is very similar to the resolved SSH problem: AI Terminal over SSH fails with `dump_bash_state: command not found` and random "command not found" lines
There, the cause was exec zsh in .bash_profile, which interrupted agent initialization. In your local Git Bash case, something similar might be happening - something in the environment interrupts dump_bash_state after a few commands.
Could you please check:
- Are there lines like
exec, source of other shells, or commands changing the environment in~/.bashrcor~/.bash_profile? - Does this reproduce with Legacy Terminal Tool enabled (Settings → Agents → Inline Editing & Terminal → “Legacy Terminal Tool”, then
Ctrl+Shift+P→ “Terminal: Kill All Terminals” and restart Cursor)? - Can you record a short video or screenshots of three commands in a row with full terminal output?
Share the info - if the pattern confirms, I’ll pass it to the engineers with details about Git Bash + third command.