Title: Project CreateAgent fails with "Tool failed; this may be temporary"; new Cloud Agents accept no first message

[Sarentik]

Where does the bug appear (feature/product)?

Cloud Agent (GitHub, Slack, Web, Linear)

Describe the Bug

Account: Sarentik (desktop Project)

1. From a long-lived Project coordinator
   https://cursor.com/agents/bc-3bd0eabe-fa09-42a3-b422-b0fa279fcca3
   CreateAgent (new cloud VM with AWS secrets, and self-hosted Mac workers)
   fails immediately: “Error creating agent: Tool failed; this may be temporary. Try again.”
   Dashboard events for this run: 0 (no reason code, not mcp_auth_error).
   same_vm placement is rejected: “not enabled for this account.”
   Reproduced many times 2026-09-12 through 2026-09-15. This parent chat itself still works.

2. From the Cursor UI I also cannot send the first message to a newly created Agent
   (create succeeds or appears to, conversation does not go out).

Expected: Project coordinator can spawn a child Cloud Agent; a user-created Agent accepts the first prompt.
Actual: spawn RPC fails with a generic temporary error; new-agent first message does not send.
Not a design question: the coordinator has the CreateAgent tool and calls it.

Please check spawn/message-delivery for this account and this Project run.

Steps to Reproduce

-Set up a “Projects” cloud agent coordinator under one Git repo or some defined environment.
-Open up another cloud agent/ let the main session self-create another sub-agent for a execution level task, do a round of ETL CRON check on my AWS EC2 instances.
-You should find that both ways you cannot create another cloud agent under the same cloud environment. But the main session is working

Expected Behavior

This function by design should be able to, as it has been doing during the past days, to create multiple sub-cloud agents to work in synergy for different type of tasks. But I found out since 2 hours ago the main session failed to create new agents under same environment.

Screenshots / Screen Recordings

Operating System

MacOS

Version Information

Cursor Mac Desktop: 3.20.21

Does this stop you from using Cursor

No - Cursor works, but with this issue

[mohitjain (Mohit)]

Hey @Sarentik, thanks for the detail. This isn’t anything on your side. Your coordinator was created with the environment’s repo list as it was then; the environment was later re-saved with a different repo list, and the coordinator keeps requesting workers with the old list, which is what surfaces as “Tool failed; this may be temporary.” It’s an issue we’re tracking.

Workaround: start a new Project on the same environment, hand it the remaining work from the old coordinator, and let it spawn the workers. Until this is resolved, start a fresh Project any time you change the environment’s repos.

The “same_vm not enabled for this account” message is expected, so just leave the machine option out and workers run on their own cloud VMs.

On the new agents not taking a first message: those failed because GitHub was briefly rate-limiting our access to your repos, so the card showed but the run never started. Still happening today? If so, drop a link to one and I’ll look.