Hey, thanks for the report. This is a known issue with Markdown rendering in chat. It showed up after a recent refactor. A few users have run into the same thing:
The team is aware of it. There isn’t a specific ETA yet, but your report helps with prioritization.
As a temporary workaround, if the text is unreadable, try copying the reply (right click, then Copy) and pasting it into a text editor. The model output is correct, it’s just a display bug.
The markdown rendering issue where dollar signs and special characters were parsed incorrectly has been addressed in a recent Cursor update. Updating to the latest version should resolve this.