The Legacy Terminal option doesn't work anymore

[Artemonim]

@Artemonim

Engineer Prompt

Goal: identify why “Legacy Terminal Tool” is ignored when enableReviewModeForTerminal=true,
and why some chats still end up with Legacy Terminal (fallback) while others use the new
read-only/review execution path.

Constraints:
- Keep behavior deterministic: same flags/settings -> same terminal mode.
- Add explicit logs that prove which branch was chosen and why.

Tasks:

1) Find the code path that reads enableReviewModeForTerminal.
   - Search for: enableReviewModeForTerminal, featureStatusCache, statsigBootstrap.

2) Find where terminal execution mode is chosen for agent commands.
   - Search for: ExtHostShellExec, terminal executor, terminalExecutionService, review mode terminal,
     beforeShellExecution, afterShellExecution, cursor-agent-exec.

3) Confirm precedence rules:
   - Does enableReviewModeForTerminal override the “Legacy Terminal Tool” setting?
   - If yes, is that intended? If intended, update UI wording and docs (toggle is misleading).
   - If not intended, fix precedence so the user toggle can force Legacy for agents.

4) Investigate non-determinism:
   - Locate any async initialization or “lazy” config loading that could race with terminal mode selection.
   - Ensure terminal mode is decided after config/flags are available.
   - Make the decision sticky per window/session (or globally), but not randomly per chat.

5) Add high-signal logs (guarded by a debug flag) that print:
   - terminal mode chosen (review vs legacy)
   - reasons (which flags/settings were read, their values)
   - whether sandbox helper is present
   - any fallback path taken

6) Add a regression test (unit/integration) that:
   - sets enableReviewModeForTerminal=true/false
   - sets “Legacy Terminal Tool” on/off
   - asserts the chosen execution mode is deterministic and matches the precedence policy.

Deliverables:
- Locations (files/functions) of the mode selection logic.
- A patch plan to make behavior deterministic and/or make the UI toggle effective.

@andrewh could you just run it using the Agent in the Cursor repo, with either GPT-5.2 XHigh or Opus 4.5 Thinking?