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

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.