Timed out waiting for launcher to connect

I’ve really wanted to give Cursor a go, but I cannot seem to be able to execute or debug any Python code.
I get a “Timed out waiting for launcher to connect” popup every single time.

In VS Code (v1.95) I don’t have that issue.

Note that this issue may be the same one that plagued older versions of VS Code - see Python Debugger: "Timed out waiting for launcher to connect" · Issue #1677 · microsoft/debugpy · GitHub. It seems that it was solved in v1.94.0

I also note that Cursor uses a different (older) version of debugpy:
~/.cursor/extensions/ms-python.debugpy-2024.6.0-darwin-arm64/
whereas VS Code uses
~/.vscode/extensions/ms-python.debugpy-2024.12.0-darwin-arm64/

Hey, Cursor is still on VSCode Version: 1.93.1, wait for updates.