Hey Hannah - thanks for the clear repro, and sorry this felt like a bug. This is expected behavior in Cursor, though it may be surprising if you are coming from VS Code.
In Cursor, Agent and Editor window layouts are defined by sidebar orientation:
Editor layout: primary sidebar (Explorer, etc.) on the left
Agent layout: primary sidebar on the right, with the Agents sidebar on the left
So when you import VS Code settings with:
"workbench.sideBar.location": "right"
Cursor treats that as the Agent layout orientation and updates Window Layout accordingly. In VS Code, sidebar-right is just a preference inside the classic IDE. In Cursor, that same preference maps to Agent layout.
If you want to stay in Editor layout after importing:
That should put the primary sidebar back on the left and keep you in Editor view. You can still use agents from Editor layout; this only changes the default arrangement. Hope that helps clarify what you are seeing. If anything still feels off after switching back to Editor, let us know.