Stuck using Auto with limit message even after increasing limits

[cmcc-pe (Chris)]

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

Using the IDE on the Team plan at my company and we hit the $1000 team limit prompting the “Increase limits for faster responses” warning and Auto model use only. After increasing the Team limit from $1000 to $1400, the model picker remains Auto only and the “Increase limits…” message remains after reloading the window, closing and opening the IDE, and signing out and in again.

Steps to Reproduce

Hit the team usage limit and then open a new chat or try and continue an existing chat.

Expected Behavior

After increasing the limit, the model picker should let you pick the model and the “Increase limits…” message should go away.

Screenshots / Screen Recordings

Operating System

Windows 10/11

Version Information

Version: 2.6.21 (user setup)
VSCode Version: 1.105.1
Commit: fea2f546c979a0a4ad1deab23552a43568807590
Date: 2026-03-21T22:09:10.098Z
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: Windows_NT x64 10.0.26200

Additional Information

Happened in February until the usage reset on the normal date at the end of the month happened again this month (March).

Does this stop you from using Cursor

No - Cursor works, but with this issue

[mohitjain (Mohit)]

Hi @cmcc-pe,

Thank you for the detailed report. This is a known issue where team hard limit increases are saved correctly, but the enforcement layer doesn’t pick up the new value, leaving team members stuck on Auto in the slow queue even though usage is below the updated limit.

Our team is aware of this. Unfortunately, the standard workarounds (restarting, signing out/in) don’t resolve it because the issue is server-side in how limit values are cached by the enforcement layer.

As you noticed, the issue resolves when usage resets at the start of the next billing cycle. I understand that’s not ideal when you need full functionality now.

I’ll make sure your report is added to the tracking for this issue so the team has visibility into the broader impact and can expedite the work.