Persistent Extension Host Crash & Network Diagnostic Failures in Cursor (0 Extensions Installed)

hello , Core Error: I keep getting the popup

Extension host terminated unexpectedly 3 times within the last 5 minutes.

1、The built-in Extension Bisect tool launches automatically every time, even with 0 extensions installed (see first screenshot).

2、The same setup works perfectly in a VM on the same network, so this is a local Windows system/permission/network interception issue—not a problem with my internet or Cursor itself

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Same thing since yesterday when I updated, this is very concerning at this point that on every update there’re more issues arising from it. Agent wiped files, had to close Cursor several time, stuck on “saving UI settings” and looping agents.

After 2 proficient years, I’m going to look elsewhere to pay my sub for a reliable tool. Starting to think we’ve past the golden age here. (sigh)

Hey, I can see the screenshots with Diagnostics and the Extensions panel.

The “Timeout waiting for EverythingProvider” and “Cancelled” errors in Diagnostics are a side effect of the extension host crashing. The extension host retrieval-always-local is crashing because of the built-in indexing binary, and until it comes back up, the network providers won’t initialize.

This is a known issue on Windows. Try this:

  • Cursor Settings (not VS Code settings) > Indexing & Docs
  • Turn off Index Repositories for Instant Grep (BETA). This is the main trigger
  • If that doesn’t help, turn off Codebase Indexing entirely
  • Restart Cursor

You’ll lose local codebase search, but chat, agent, and Tab completions will still work.

The fact that it works in a VM confirms it’s something in the local environment. A couple questions:

  • What Cursor version are you on? Help > About Cursor > Copy
  • Do you have any VPN software installed, even if it’s not running? For another user, fully uninstalling the VPN fixed a similar issue: Extension host terminated unexpectedly no matter what i try
  • How big is the project, roughly how many files?

Let me know if turning off Instant Grep helped.