removed the cursor app from GitHub and all my accounts.
then tried to reconnected, was getting error for few hours,
reconnected again, reinstalled and now working.
This is a confirmed regression. The underlying issue is that when a user leaves a team, the GitHub installation record keeps the old team association, which incorrectly triggers the “Team Managed” permission block for individual users.
The fix you found (removing the GitHub App from GitHub Settings > Applications, then reconnecting) is the right workaround. It creates a fresh installation record without the stale team link.
This is a known issue that our team is actively investigating. The goal is to have this cleanup happen automatically so users don’t need to manually reinstall.