Regression: github projects endpoint no longer accessible

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

I successfully setup a github MCP server to provide access to the github ‘projects’ tools (30 days ago) and it was working correctly. I returned to working on this project a few days ago and find I now get an error in cursor settings:

2026-04-10 09:01:40.742 [info] [V2] Handling CreateClient action
2026-04-10 09:01:40.742 [info] [V2 FSM] connection:connect_start: conn=idle,auth=unknown -> conn=connecting,auth=unknown
2026-04-10 09:01:42.203 [info] No stored client information found
2026-04-10 09:01:42.206 [info] Using redirect URL
2026-04-10 09:01:42.207 [warning] Transient error connecting to streamableHttp server: Incompatible auth server: does not support dynamic client registration
2026-04-10 09:01:42.207 [warning] Connection failed: Incompatible auth server: does not support dynamic client registration
2026-04-10 09:01:42.207 [warning] [V2 FSM] connection:connect_failure: conn=connecting,auth=unknown -> conn=failed,auth=unknown
2026-04-10 09:01:42.207 [info] CreateClient completed, connected: false, statusType: error

Steps to Reproduce

Create an MCP entry with a github personal access token as follows:

    "github-projects": {
      "type": "http",
      "url": "https://api.githubcopilot.com/mcp/x/projects",
      "headers": {
        "Authorization": "Bearer ghp_my_key”
      }
    },

Expected Behavior

Cursoe should authenticate with the github MCP server should provide the github projects tools.

Operating System

MacOS

Version Information

Version: 3.0.13
VSCode Version: 1.105.1
Commit: 48a15759f53cd5fc9b5c20936ad7d79847d914b0
Date: 2026-04-07T03:05:17.114Z
Layout: editor
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin x64 24.6.0

For AI issues: which model did you use?

N/A

Additional Information

I think this may be a similar issue:

Does this stop you from using Cursor

No - Cursor works, but with this issue

Hey, thanks for the report. This is a known bug. Cursor starts OAuth discovery before it sends the POST with your Authorization header. If the server (in this case api.githubcopilot.com) responds to the OAuth discovery endpoints, Cursor tries Dynamic Client Registration, but GitHub doesn’t support it. That’s why you see the error.

More details on the root cause and discussion here: MCP headers config ignored when server has OAuth discovery

Unfortunately there’s no client-side workaround. The issue is that the logic “if Authorization is already in headers, skip OAuth” is missing. The team is aware, but there’s no ETA yet. Your report helps with prioritization.

Let me know if anything changes.