Toggle terminal shortcut doesn't work on cursor 2.0

Bug Reports
1

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

I cannot toggle the terminal properly; for example, I have a full terminal height in my editor. But I cannot toggle the terminal again using the same shortcut (should be Ctrl+`)

This happens on my Windows and Linux machines

Steps to Reproduce

I’m just using the default keybind to toogle terminal (ctrl+`), I’m not changing anything
So here’s the flow

First I toggle the terminal view using (ctrl+`)
Second, I use the shortcut to maximize the terminal panel height with this keybind:

	{
		"key": "ctrl+shift+f",
		"command": "workbench.action.toggleMaximizedPanel",
		"when": "terminalFocus"
	}

Then, when I want to toggle the terminal again with (ctrl+`), it doesn’t work. This happens on cursor 2.0. It works on the previous version

Expected Behavior

The behavior works as expected, as the previous version

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.0.34 (system setup)
VSCode Version: 1.99.3
Commit: 45fd70f3fe72037444ba35c9e51ce86a1977ac10
Date: 2025-10-29T06:51:29.202Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Does this stop you from using Cursor

No - Cursor works, but with this issue

2

This video shows the previous way I toggled my terminal

Previous Cursor Version

Version: 1.7.54 (system setup)
VSCode Version: 1.99.3
Commit: 5c17eb2968a37f66bc6662f48d6356a100b67be0
Date: 2025-10-21T19:07:38.476Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

3

Same issue here.

It only happens when the sidebar is closed and the terminal is maximized.