Thanks for the reply, but this is a different issue.
This bug is about manual paste (Cmd+V) into the terminal freezing the PTY – it has nothing to do with the Agent Terminal Tool or command execution delay.
Key differences:
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No AI agent or Terminal Tool is involved – I’m pasting text directly into the integrated terminal while Claude Code CLI is running
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The terminal becomes completely unresponsive (not a delay – a permanent freeze requiring session kill)
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Stack sampling confirms the Claude Code process is idle (99.5% kevent64) – the freeze is in Cursor’s PTY/renderer layer
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This does NOT reproduce in VS Code with the identical setup
The “Legacy Terminal Tool” workaround is not applicable here since no agent tool is being used.
This appears to be the same root cause as the known node-pty 1.1.0 buffer issue reported here:
VS Code has already upgraded to node-pty 1.2.0 which fixes the non-blocking PTY write handling. Cursor still bundles node-pty 1.1.0-beta42, which causes deterministic data loss / freeze at the ~1018 byte buffer boundary.
Could this be re-triaged as a terminal/PTY dependency update issue?