No response when using long-context with custom API(ie openrouter) and folders

Cursor pushes couple dollars worth of tokens to Openrouter but never arrives with response. On “follow up” output tokens are there and context is pushed again, larger, but Cursor still doesnt show neither response nor error message of any sort.

This will happen for “codebase” query. And folders.
But doesnt seem to happen for individual files referenced via @ or current file.