[ SOLVED ] Cursor lost settings after latest updates

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

After latest update, the Cursor lost all my VSCode settings that were polished over the years

Steps to Reproduce

Open Cursor
Allow to update
See that settings from settings.json is not working anymore

Expected Behavior

Settings work as before

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.1.44 (user setup)
VSCode Version: 1.105.1
Commit: f6a8593b2b7c61c2063c79d5a8fcd248c9db4580
Date: 2025-12-01T22:52:09.315Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Windows_NT x64 10.0.22631

Does this stop you from using Cursor

Yes - Cursor is unusable

Problem is solved.