Why My Cursor IDE Got Stuck on ‘Generating’ After Updating to 1.1.4 and How I Fixed It in Minutes
June 19, 2025Why My Cursor Project Rules Stopped Working in 1.0.0 and How I Fixed It
June 19, 2025I just updated my Cursor IDE to version 1.1.3, and boom — my Claude Sonnet usage shot through the roof. Suddenly, I was burning through my monthly request allocation in a matter of hours. Here’s how I tracked down the problem and fixed it.
The Shocking Problem I Encountered
Right after updating, I noticed something weird. Even simple prompts with Claude Sonnet were eating up requests like crazy. What used to cost 0.8x per request suddenly showed as 10 times more!
My 100 fast requests? Gone after just two uses. And the dashboard made no sense — I saw charges on my Pro plan that shouldn’t have been there.
Honestly, I was frustrated and a little panicked. Unexpected costs are the last thing any developer wants.
What I Discovered About the Root Cause
After digging in, I found the real problem: third-party extensions I used for tracking. You know, those handy tools that show your usage? Well, they were the troublemakers.
Here’s why: Cursor had introduced a new pricing model with rate limits and usage-based charges. But my extensions hadn’t caught up. They were still using old methods to report data.
So they didn’t understand that requests under the rate limit aren’t charged. Plus, they couldn’t map legacy plans to the new metrics. That’s why my usage looked sky-high — even though I wasn’t actually being charged that much.
How I Solved It Step by Step
- Audit your extensions: I hunted down every third-party tool tracking usage (like Cursor Pulse) and disabled them. They were the root of the problem.
- Switch to legacy pricing: In Cursor’s settings, I reverted to the old pricing plan. This stabilized my reporting until extensions could update.
- Trust the official dashboard: I stopped looking at extension reports and only used Cursor’s built-in usage monitor. It’s the only source of truth right now.
- Update or remove: I checked for updates from the extension developers. If there wasn’t a fix, I uninstalled the extension. No more outdated tools causing chaos.
My Advice for Avoiding This
This whole mess taught me a few things. First, after any major update, check your usage with Cursor’s official tools. Don’t trust third-party extensions until they’ve confirmed compatibility.
Second, keep your extensions updated. If the developer hasn’t fixed it for the new pricing model, uninstall it. It’s just not worth the risk.
And if you’re on a legacy plan? Double-check how it maps to the new system. Keep an eye on your account for any weird charges.
The Cursor team is improving backward compatibility, but being proactive saved me both stress and money.