I’m also having the same issue.
App details:
Version: 0.41.3
VSCode Version: 1.91.1
Commit: 51c8aff7cb5a89f4a0e462fbacab938bdbfaf140
Date: 2024-09-25T17:13:50.377Z
Electron: 29.4.0
ElectronBuildId: undefined
Chromium: 122.0.6261.156
Node.js: 20.9.0
V8: 12.2.281.27-electron.0
OS: Darwin arm64 23.1.0
Output trace:
2024-10-08 13:05:22.522 [info] Creating merkle client.
2024-10-08 13:05:22.522 [info] Done creating merkle client.
2024-10-08 13:05:22.522 [info] Doing a startup handshake.
2024-10-08 13:05:22.673 [info] Finished initializing merkle tree in 151.75770902633667 ms.
2024-10-08 13:05:22.674 [info] Doing the initial handshake with hash: 4f56d56b846061c27aa529ee4b399a6b909d6195452901ead203311dfc7ea170
2024-10-08 13:05:22.674 [info] Handshake start
2024-10-08 13:05:22.953 [info] Handshake timing: 279.2430419921875
2024-10-08 13:05:24.957 [info] Handshake start
2024-10-08 13:05:25.208 [info] Handshake timing: 251.09337496757507
2024-10-08 13:05:29.208 [info] Handshake start
2024-10-08 13:05:29.470 [info] Handshake timing: 261.72062492370605
2024-10-08 13:05:37.475 [info] Handshake start
2024-10-08 13:05:37.745 [info] Handshake timing: 270.0830409526825
2024-10-08 13:05:53.750 [info] Handshake start
2024-10-08 13:05:53.997 [info] Handshake timing: 246.9032919406891
2024-10-08 13:06:26.001 [info] Handshake start
2024-10-08 13:06:26.260 [info] Handshake timing: 259.888375043869
2024-10-08 13:07:30.263 [error] Handshake failed:
2024-10-08 13:07:30.263 [error] Error: timeout in handshake with retry
at t.RepoClientMultiplexer.handshakeWithRetry (/Applications/Cursor.app/Contents/Resources/app/extensions/cursor-retrieval/dist/main.js:2:826553)
at async w.getServerStatus (/Applications/Cursor.app/Contents/Resources/app/extensions/cursor-retrieval/dist/main.js:2:841881)
at async w.startIndexingRepository (/Applications/Cursor.app/Contents/Resources/app/extensions/cursor-retrieval/dist/main.js:2:844181)
2024-10-08 13:07:30.263 [error] Handshake failed.
2024-10-08 13:07:30.263 [info] Indexing job successfully done or aborted.