[Bug] Accept All in Cursor approval prompt cancels edit and terminates run

Bug Description
When linked to Cursor, when it pops up the initial prompt to approve an edit in Cursor - hitting accept all for this session" seems to just cancel the edit and cancel the run. I have to prompt Claude to continue every time.

Environment Info

• Platform: win32
• Terminal: windows-terminal
• Version: 2.0.42
• Feedback ID:

Errors

[{"error":"Error\n    at RK (B:/~BUN/root/claude.exe:59:1142)\n    at <anonymous> (B:/~BUN/root/claude.exe:64:10074)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at spawnSync (unknown)\n    at spawnSync (node:child_process:226:22)\n    at execSync (node:child_process:275:109)\n    at iK (B:/~BUN/root/claude.exe:88:432)\n    at bKD (B:/~BUN/root/claude.exe:3843:5160)\n    at request (B:/~BUN/root/claude.exe:66:2146)\n    at processTicksAndRejections (native:7:39)\n    at spawnSync (unknown)\n    at spawnSync (node:child_process:226:22)\n    at execSync (node:child_process:275:109)\n    at iK (B:/~BUN/root/claude.exe:88:432)\n    at bKD (B:/~BUN/root/claude.exe:3843:5160)\n    at Pb (B:/~BUN/root/claude.exe:3843:7338)\n    at V2I (B:/~BUN/root/claude.exe:1592:11701)\n    at Yg (B:/~BUN/root/claude.exe:1592:13115)","timestamp":"2025-11-17T04:31:44.447Z"},{"error":"Error\n    at RK (B:/~BUN/root/claude.exe:59:1142)\n    at <anonymous> (B:/~BUN/root/claude.exe:64:10074)\n    at emit (node:events:92:22)\n    at endReadableNT (internal:streams/readable:861:50)\n    at processTicksAndRejections (native:7:39)\n    at spawnSync (unknown)\n    at spawnSync (node:child_process:226:22)\n    at execSync (node:child_process:275:109)\n    at H (B:/~BUN/root/claude.exe:1484:1602)\n    at Tk0 (B:/~BUN/root/claude.exe:1484:1791)\n    at request (B:/~BUN/root/claude.exe:66:2146)\n    at processTicksAndRejections (native:7:39)\n    at spawnSync (unknown)\n    at spawnSync (node:child_process:226:22)\n    at execSync (node:child_process:275:109)\n    at H (B:/~BUN/root/claude.exe:1484:1602)\n    at Tk0 (B:/~BUN/root/claude.exe:1484:1791)\n    at Qk0 (B:/~BUN/root/claude.exe:1484:2309)\n    at Qk0 (B:/~BUN/root/claude.exe:1484:2432)\n    at A (B:/~BUN/root/claude.exe:11:6661)","timestamp":"2025-11-17T04:31:44.861Z"},{"error":"Error: String not found in file. Failed to apply edit.\n    at dPH (B:/~BUN/root/claude.exe:1612:731)\n    at _rH (B:/~BUN/root/claude.exe:1612:107)\n    at sCI (B:/~BUN/root/claude.exe:1785:1340)\n    at r9I (B:/~BUN/root/claude.exe:1010:9277)\n    at DE (B:/~BUN/root/claude.exe:101:19663)\n    at X2 (B:/~BUN/root/claude.exe:103:42806)\n    at fK (B:/~BUN/root/claude.exe:103:38344)\n    at pf (B:/~BUN/root/claude.exe:103:38272)\n    at S7 (B:/~BUN/root/claude.exe:103:38126)\n    at IK (B:/~BUN/root/claude.exe:103:35203)","timestamp":"2025-11-17T04:31:51.939Z"},{"error":"Error\n    at <anonymous> (B:/~BUN/root/claude.exe:46:51549)\n    at <anonymous> (B:/~BUN/root/claude.exe:64:10240)\n    at emitError (node:events:43:23)\n    at <anonymous> (B:/~BUN/root/claude.exe:63:1146)\n    at emitError (node:events:43:23)\n    at <anonymous> (node:_http_client:249:22)\n    at processTicksAndRejections (native:7:39)\n    at request (B:/~BUN/root/claude.exe:66:2146)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-11-17T04:32:02.153Z"},{"error":"Error\n    at <anonymous> (B:/~BUN/root/claude.exe:46:51549)\n    at <anonymous> (B:/~BUN/root/claude.exe:64:10240)\n    at emitError (node:events:43:23)\n    at <anonymous> (B:/~BUN/root/claude.exe:63:1146)\n    at emitError (node:events:43:23)\n    at <anonymous> (node:_http_client:249:22)\n    at processTicksAndRejections (native:7:39)\n    at request (B:/~BUN/root/claude.exe:66:2146)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-11-17T04:32:48.447Z"},{"error":"Error\n    at <anonymous> (B:/~BUN/root/claude.exe:46:51549)\n    at <anonymous> (B:/~BUN/root/claude.exe:64:10240)\n    at emitError (node:events:43:23)\n    at <anonymous> (B:/~BUN/root/claude.exe:63:1146)\n    at emitError (node:events:43:23)\n    at <anonymous> (node:_http_client:249:22)\n    at processTicksAndRejections (native:7:39)\n    at request (B:/~BUN/root/claude.exe:66:2146)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-11-17T04:33:05.840Z"},{"error":"Error\n    at <anonymous> (B:/~BUN/root/claude.exe:46:51549)\n    at <anonymous> (B:/~BUN/root/claude.exe:64:10240)\n    at emitError (node:events:43:23)\n    at <anonymous> (B:/~BUN/root/claude.exe:63:1146)\n    at emitError (node:events:43:23)\n    at <anonymous> (node:_http_client:249:22)\n    at 

Note: Error logs were truncated.