Hey, this is a known issue. Agents Window Glass doesn’t support WSL connections yet. The extension installs, but Glass doesn’t activate it, so you get an infinite loop.
Workaround: use Editor Window for WSL projects. You can switch via the Open Editor Window command, or launch Cursor in classic mode:
cursor --classic
WSL works normally there.
More details and discussion in the main thread: Cursor 3: Extension 'WSL' is required to open the remote window
The team is aware. Let me know if the workaround helps.