Not sure if it is related to the issue you experience. I just noticed it first about 20min ago. Was using Cursor with android studio and it was able to edit the code in the activities without problems. Suddenly it stopped and Claude 3.7 Sonnet replied that it can not edit files directly and I should copy and paste the changes. Not sure what went wrong. This feature was a real time saver. It used to run the gradlelew command to apply changes directly.