Hey, this is a known issue. We’ve seen a few similar reports over the last week, and the team is aware.
A few things to check:
MCP servers: If you have any set up (in .cursor/mcp.json or globally), try removing them temporarily. In a similar thread, that was the cause.
zsh config: Temporarily rename ~/.zshrc to ~/.zshrc.bak, then restart Cursor. Some plugins (oh-my-zsh, powerlevel10k) can conflict with terminal output capture.
Legacy Terminal: In Cursor Settings CMD+Shift+J > Agents, enable Legacy Terminal Tool, then run CMD+Shift+P > Terminal: Kill All Terminals, and fully restart Cursor.
Extensions: Run cursor --disable-extensions from a terminal to check if something is blocking it.
If none of that helps, we’ll need:
A screenshot of the DevTools Console at Help > Toggle Developer Tools > Console right after you try running a command via the agent
The Request ID from the chat (top right > Copy Request ID)