Terminal + Version Control doesn't load

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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.