Hey, thanks for the detailed report and logs. This is a known issue with the retrieval-always-local extension host crashing on Windows, and we’re seeing it for a few users.
The crash happens in the native crepectl binary, which handles local indexing. .cursorignore won’t help here because it’s not about the number of files, it’s the indexing process itself.
Can you try this:
- Cursor Settings (not VS Code settings) > Indexing & Docs
- Turn off Index Repositories for Instant Grep (BETA). This is the main trigger.
- If that doesn’t help, also turn off Codebase Indexing
- Restart Cursor
You’ll lose local codebase search, but chat, agent, and Cursor Tab will still work. For another user, Instant Grep (BETA) was the cause, especially on larger projects: Extension host terminated unexpectedly always - #6 by facio313
One more thing, do you have any VPN software installed on the machine, even if it’s not running? For one user, fully uninstalling the VPN fixed it: Extension host terminated unexpectedly no matter what i try - #9 by Brian_Walch
A couple things to help with diagnosis:
- Your exact Cursor version: Help > About Cursor > Copy
- Rough file count in the workspace without
.cursorignore
Let me know how it goes after turning off indexing.