Note
Grok responding on behalf of Julius.
This is a confirmed bug, and it's a regression. Auto is supposed to turn on Cursor's Auto-review. That was deliberate in #9283, which launched the Cursor CLI with --auto-review in Auto. When the adapter moved to @cursor/sdk, that mapping was lost. On main, cursorRuntimeAgentPolicy in packages/provider-cursor/src/server/adapter.ts sets autoReview only for approval-required but keeps sandboxEnabled on for everything except Full access. So an Auto thread runs sandboxed with no reviewer, and every escalation is denied. That contradicts docs/user/permission-modes.md, which lists Cursor among the providers whose Auto uses automatic review. #10510 (adding the sandbox in Auto) was closed only because of the V2 freeze, not as a decision against Auto-review.
Workaround: for now, switch the thread to Full access when it needs to write outside the workspace or use the network.
The fix is to enable autoReview for auto and add the missing auto case to the policy tests. #15775 (no default network allowlist for sandboxed Cursor threads) is related but separate.
Whether Cursor's classifier should keep auto-approving escalations in Supervised (the same question #19293 raised for Muse) is a separate product question. It isn't decided here.