Cursor AI Updates: June 18, 2026

1. Cloud Environments and Cloud Subagents Arrive in the Agents Window

Cursor. Cursor 3.7, released June 17, lets the agent configure a dev environment in the cloud within about 10 minutes and capture it as a reusable snapshot stored in .cursor/environment.json. The release also adds cloud subagents through a new /in-cloud command that runs work in isolated VMs, plus a /babysit command for remotely iterating on pull requests until they are ready to merge. It matters because developers can offload long-running tasks such as CI fixes and investigations to the cloud while keeping their local workspace responsive, with smoother handoff between local and cloud sessions. Source