Terminal AI help doesn't work, but everything else does

Discussion
1

The problem I’m having is that while Chat/Agent works just fine, the Terminal AI in my zsh piece gives me Connect Failed (see screenshots)
I’m posting this here in case someone can point out something i’m doing wrong.
I’m running Cursor behind a proxy - SSH tunnel → Squid linux host, using the following setting in the User JSON settings:

    "http.proxyStrictSSL": false,
    "http.proxy": "http://127.0.0.1:9988",

ssh conf - this host runs squid:

    LocalForward 9988 localhost:9988
    ServerAliveInterval 60
    IPQoS lowdelay throughput
    ExitOnForwardFailure yes
    ForwardAgent yes

image
image654×720 46.2 KB

image
image1236×654 37.4 KB

Anyone have ideas as to what could be going wrong? I’m running the latest version - and it used to work until 0.46, when I had to switch to http proxy from socks5 (for the HTTP/2)