It looks like you’re on the nightly version. You can switch to the previous version by changing the update channel from Nightly to Default on the Beta tab in Cursor settings.
One of the greatest features in cursor is taken away!! I think you should evaluate if a feature is really important, remember that all here are working, or using it for personal software development. This kind of change (taking out) the “Notepad feature” only give unthrust desire to change to a newer version. I have to roll back to the previous version because I have a lot of notepads that “make my day” every day. In the next o someone version please add a great banner “Notepads has comeback!” otherwise I don´t think to move in no way.
Have a nice coding!!!