This is a known issue the team is actively working on. The “planning next moves” / “taking longer than expected” hang when referencing files has been reported by several users.
I also noticed you posted about the same hang in plan mode — these are likely the same underlying issue, so I’ll track both here.
A few things to try:
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Re-index your project: Cursor Settings (not VS Code settings) > Indexing > Resync Index. This has resolved similar hangs for some users.
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Test with an empty folder: File > Open Folder > pick an empty directory, start a new chat, reference a file with @. If it works there, the issue may be tied to your project’s index.
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Disable HTTP/2: Cursor Settings > search “HTTP/2” > enable “Disable HTTP/2”, then fully quit and reopen Cursor.
Also, next time it gets stuck, could you grab a Request ID? Click the three dots at the top right of the chat > Copy Request ID. That helps us trace exactly what’s happening on the backend.
Related thread with the same trigger: Infinite loading when adding file references in chat