Cursor 1.3 adds agent terminal sharing, faster edits, and enterprise controls

Cursor latest version 1.3 brings several major enhancements for developer productivity and team management. Agents are now able to use your native terminal, launching a dedicated session in the background if it is not already running. With a single click, users can bring this terminal to the forefront to monitor or take control of agent-initiated commands.

For chat workflows, the update adds context usage visibility, allowing users to see how much of the context window is consumed at conversation end. Editing tasks have been streamlined: agent edits now load linter errors only when needed, resulting in faster operation. In addition, Search & Replace operations run 25 percent faster, and applying edits is nearly 11 percent quicker.

While improving these core features, enterprise customers now gain greater control through the ability for team administrators to define an extension allowlist. On the security front, the product now uses allowlists for auto-run instead of denylists. Additional refinements include displaying the active tab in Chat, right-click directory send-to-chat actions, and checkpoint support within Notebooks.

Other updates cover extension marketplace support for custom URLs, availability of an extension monitor after enabling, removal of the Manual mode from Chat, and fixes for background agent issues.