Causes "Connection Failed" in Cursor 2.0

[psionprime]

Prerequisites

• I have written a descriptive issue title.
• I have searched all open and closed issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
• If this is a security issue, I have read the security issue reporting guidance.

Summary

Causes "Connection Failed" in Cursor 2.0 I run Cursor 2.0 without the extension and all is well.

PowerShell Version

Name                           Value
----                           -----
PSVersion                      5.1.26100.6899
PSEdition                      Desktop
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}
BuildVersion                   10.0.26100.6899
CLRVersion                     4.0.30319.42000
WSManStackVersion              3.0
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1

Name             : ConsoleHost
Version          : 5.1.26100.6899
InstanceId       : 68dda2fe-4784-42cc-8689-b28f4ebe0d2b
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : en-US
CurrentUICulture : en-US
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled  : True
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.105.1
7d842fb85a0275a4a8e4d7e040d2625abbf7f084
x64

Extension Version

I removed it but was current as of yesterday.

Steps to Reproduce

Install extension in Cursor 2.0. Work until "Connection Failed".

Visuals

No response

Logs

No response