Terminal + Version Control doesn't load

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

Entire IDE just hangs when loaded up. Source control doesn’t show and terminals don’t load. Only way to fix was to rollback to an older version but when I restarted my computer it updated automatically and broke again. When this happens I just switch back to vs code and codex because it literally doesn’t work at all.

Steps to Reproduce

On Mac just open a project in cursor 3, it doesn’t happen every time though.

Expected Behavior

The terminal should show text and the version control panel should show something

Operating System

MacOS

Version Information

Version: 3.1.17
VSCode Version: 1.105.1
Commit: fce1e9ab7844f9ea35793da01e634aa7e50bce90
Date: 2026-04-19T19:33:58.189Z
Layout: editor
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.4.0

Does this stop you from using Cursor

Yes - Cursor is unusable

Hey, this is a known issue with Extension Host initialization on 3.1.17. When it doesn’t start in time, Terminal and Source Control stay stuck on loading.

Before reinstalling everything again, try a more targeted workaround. It helped another user on the same version, see Extension Host fails to initialize (Timeout waiting for auth and plugins), breaking AI Agents and Source Control

  1. Fully quit Cursor.
  2. On macOS, delete (or back up first) the workspace folder for this project from:
    ~/Library/Application Support/Cursor/User/workspaceStorage/
    
    These are subfolders with hashed names. You can find the right one by running grep in workspace.json for your project path, or if you don’t have many workspaces, you can delete everything there.
  3. Reopen Cursor and open the project again.

We’re tracking this issue on our side, but I can’t share an ETA for a fix yet. If this helps, let me know, and if you notice any trigger for when it starts happening, like a specific action, extension, or MCP, that would really help narrow it down. If it doesn’t help, reply too and we’ll dig into the logs from Output > Extension Host.