Hey, thanks for the report. This is a known regression in Cursor 2.x, and the team is aware and working on a fix.
The issue has been confirmed by several users Playwright MCP not working on Cursor. The MCP tools show up in settings, but the agent doesn’t use them. It worked in Cursor 1.7 and up to version 2.0.77, and it broke starting with 2.0.78+.
I’ll pass this to the team to help speed up the fix.