On long chats tool calls do not display terminal text

At some point in long chats tool calls stop to display text in the teminal output. But I can feel it executes correctly because the terminal area grows during tool execution. It’s just about the text displayed.

Here in the screenshot the build started and terminal box has grown to its maximum size, but I can not see the progress.

Version: 0.46.8
VSCode Version: 1.96.2
Commit: be4f0962469499f009005e66867c8402202ff0b0
Date: 2025-02-28T19:31:35.681Z
Electron: 32.2.6
Chromium: 128.0.6613.186
Node.js: 20.18.1
V8: 12.8.374.38-electron.0
OS: Darwin arm64 24.3.0

I just opened a new chat and started with the conversation, and the same behavior occurred there.
But with slight change: the text had appeared after command had finished its work, when agent stated to do some other generation.

I restarted Cursor, continued with the chat (that new one), and the issue has gone.

Yes this is confirmed issue also for us. tool usage is inconsistent and hard to see what terminal output was. This must be made simpler to use for developers.