Terminal working directory fails to follow active workspace changes

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1

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

The agents window allows us to work across projects but weirdly the terminal is always defaulting to one of the workspace’s directory instead of opening into the directory of the current workspace of the agent we are working with.

Steps to Reproduce

  1. Open the Agents window
  2. Open a new terminal in workspace A. Note the cwd.
  3. Open another terminal but in workspace B. The cwd will be that of A.

Expected Behavior

It should open the current working directory of whichever workspace we are in, not the first one we had when the window was opened. This is very annoying as I have to change directories always. Its like showing the files from another workspace except in the terminal in this case.

Operating System

Windows 11 with WSL workspaces
(not sure about native windows behavior coz all my projects run in WSL)

Version Information

Version: 3.3.30 (user setup)
VSCode Version: 1.105.1
Commit: 3dc559280adc5f931ade8e25c7b85393842acf30
Date: 2026-05-09T18:28:42.332Z
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: Windows_NT x64 10.0.26200

Does this stop you from using Cursor

No - Cursor works, but with this issue

7

This is a known bug. Our team is actively investigating and working on a fix.

In the meantime, you can work around this by running cd /path/to/your/project in the terminal after switching workspaces.

Your report is helpful because it confirms this also affects WSL workspaces (the original report was SSH-specific), which gives our team broader context.

Let me know if you have any other questions!

9

Hey @nerdimite!
We’ve shipped a fix in this area since you posted. Could you give it another try on the latest version of Cursor? Quick check:

  1. Open the Agents window
  2. Open a new terminal in workspace A, note the cwd
  3. Open another terminal in workspace B and check whether the cwd now reflects B

Let me know if the terminal still sticks to the wrong workspace’s directory!