Hey, thanks for the detailed report. I can see the screenshot with the banner Reconnecting to agentn.global.api5.cursor.sh.
There are two separate things here:
The buffer glitch or freeze is known behavior of the agent TUI in embedded terminals that resize or re-layout. agent is a full-screen TUI, and on every resize it fully redraws the history. When you move the Zed terminal into an editor pane, that triggers a resize, and Zed’s embedded terminal emulator (especially on WSL) doesn’t always render the redraw cleanly. Also, Zed doesn’t always set a detectable TERM_PROGRAM (in the version info it shows Terminal: unknown), which can prevent the CLI from applying terminal-specific tuning.
The Reconnecting... banner is a separate network retry banner. It’s not about redraw, it just becomes visible when you force a buffer redraw by clicking or pressing an arrow key.
Workarounds that usually help:
Run agent in a separate standalone terminal, not in a pane you move or resize.
Don’t move the pane mid-session.
Alternatively, use Zed’s ACP integration to work with Cursor via ACP instead of the raw TUI.
We’re tracking the redraw behavior in embedded terminals, but I can’t share an ETA for a fix yet. Let me know if the workarounds helped.