Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
This bug started yesterday after a Cursor update.
Terminal within Cursor chat has incorrect background color (white) in dark-themed IDE.
This is happening only when that chat section is collapsed. when expanded the background color is as-expected
Steps to Reproduce
ask a prompt which will execute a terminal command within the chat
Screenshots / Screen Recordings
Operating System
Windows 10/11
Version Information
Version: 3.8.2 (system setup)
VS Code Extension API: 1.105.1
Commit: b89e482a59f84f55a982a0e6fa6b2399a1430860
Date: 2026-06-16T01:49:35.480Z
Layout: editor
Build Type: Stable
Release Track: Nightly
Electron: 40.10.3
Chromium: 144.0.7559.236
Node.js: 24.15.0
V8: 14.4.258.32-electron.0
xterm.js: 6.1.0-beta.256
OS: Windows_NT x64 10.0.26200
For AI issues: which model did you use?
Composer 2.5
Does this stop you from using Cursor
No - Cursor works, but with this issue