My chats are just hanging with "Planning next moves" and "Taking longer than expected..."

The diagnostics results speak for themselves. Your network has a proxy that blocks bidirectional streaming, which the Agent needs. Key errors:

  • Agent: “Bidirectional streaming is not supported by the http2 proxy in your network environment”
  • Chat: “Streaming responses are being buffered by a proxy”

Main workaround is to disable HTTP/2. If you haven’t enabled this setting yet:

  1. Open Settings Cmd+,
  2. Search for HTTP/2
  3. Turn on Disable HTTP/2
  4. Restart Cursor

This should switch to HTTP/1.1 and work around the proxy issue. After that, run diagnostics again via Cursor Settings > Network > Run Diagnostics and the results should look better.

About Composer 2, which models do you currently see in your model picker? Is Auto still there? For now, try using a specific model directly like Claude 4.6 Sonnet or GPT-5.

Let me know if disabling HTTP/2 helped.