Terminal opens as external PowerShell window instead of integrated panel (regression in 2.5.20))

Support Bug Reports
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1

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

When opening a new terminal (Terminal → New Terminal), the integrated terminal panel opens blank with no shell prompt, and a separate external PowerShell window opens instead. The integrated terminal never becomes active. When the external window is closed by the user, Cursor shows a notification “terminal process terminated”

Steps to Reproduce

  1. Open Cursor IDE (any workspace, or no workspace)
  2. Click Terminal → New Terminal
  3. Observe: integrated terminal panel at bottom is blank, a separate standalone PowerShell window opens

Expected Behavior

The terminal should open as an integrated panel at the bottom of the IDE with an active PowerShell prompt, as it does in VSCode on the same machine.

Operating System

Windows 10/11

Version Information

Version: 2.5.20
VSCode Version: 1.105.1

Additional Information

downgrading to version 2.4.31 temporarily resolved the issue, but not permanently

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor

5

Hi @Shterna_Munitz! :waving_hand: I saw you also got in touch with [email protected] and it appears to be an issue with one of the extensions installed. If you figure out which one, please come back and update the community to help others with the same issue!