Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
Cursor IDE still performs MCP OAuth Dynamic Client Registration with a custom-scheme redirect URI (the anysphere.cursor-mcp oauth callback).
Standards-compliant OAuth authorization servers / DCR implementations that only allow http or https redirect URIs reject this. That blocks remote MCP servers that work fine with Claude Code (which uses a first-party https callback).
Concrete failure against KnowDrive MCP on dev.knowdrive.ai:
redirect_uri scheme not allowed (cursor custom-scheme callback)
The same provider accepts RFC 8252 localhost loopback callback on port 8787 via DCR. Cursor staff previously said MCP OAuth moved to loopback on the mcp_process surface, but this install on Cursor 3.13.25 still uses the old custom-scheme / exthost path.
Custom-scheme redirects are an unacceptable default for MCP OAuth DCR. Please fully retire the custom-scheme callback for DCR and use RFC 8252 loopback (127.0.0.1 / localhost) and/or a first-party https callback on all installs.
Steps to Reproduce
- Add a remote Streamable HTTP MCP server that requires OAuth + DCR (example: KnowDrive MCP on dev.knowdrive.ai).
- In Cursor Settings → MCP, click Connect / authenticate for that server.
- Observe DCR / authorize request uses the cursor custom-scheme oauth/callback redirect URI.
- Provider rejects registration/auth with “redirect_uri scheme not allowed”.
- Confirm the same provider accepts the RFC 8252 loopback callback localhost:8787/callback in DCR.
Expected Behavior
MCP OAuth DCR should never register or send custom-scheme redirect URIs.
All Cursor installs should use industry-standard callbacks:
- RFC 8252 loopback on 127.0.0.1 or localhost
- and/or a first-party https callback (as Claude Code does)
The gradual leftover exthost custom-scheme path should be removed.
Operating System
MacOS
Version Information
Version: 3.13.25
OS: macOS (darwin 23.6.0)
MCP server: KnowDrive on dev.knowdrive.ai
Log evidence (mcp-server-user-knowdrive.log):
Transient error connecting to streamableHttp server: redirect_uri scheme not allowed (cursor custom-scheme oauth callback)
Additional Information
Related prior staff confirmation that Cursor moved MCP OAuth to localhost loopback because many providers reject the cursor custom scheme: forum topic “OAuth redirect URI changed from cursor to http localhost for Streamable HTTP MCP”.
This report is that 3.13.25 is still on the old custom-scheme path, so standards-compliant MCP providers remain broken.
Comparison: Claude Code connects to the same KnowDrive MCP endpoint successfully using https OAuth callbacks.
Does this stop you from using Cursor
Sometimes - I can sometimes use Cursor