The AI Agent is not able to read any file at all, so it tries to fallback to cat, ls, sed or even git commands to read the file. It outputs Tool read_file not found. for every single file.
Steps to Reproduce
The bug seems to be random, but its not rare.
Expected Behavior
The agent reads the file using the read_file tool successfuly
Operating System
Windows 10/11
Current Cursor Version (Menu → About Cursor → Copy)
This can happen both in new and existing chats, it seems really random.
I haven’t tried the stable version, I understand that this can happen only on Nightly/Pre-release and that those versions aren’t supposed to work 100% at all times.
I’m observing the same issue. The problem occurs reproducibly when using custom modes; the standard agent works fine.
For testing purposes, I created a custom mode without a prompt but with All Tools and model:auto. The problem occurs both with and without auto-run.