v1.2.0

From the 2026-10-01 comparison with Cursor's own CLI, SDK and Cloud Agents API (docs/COMPETITION-2026-10-01.md).

Changed

• The truth about headless edits. Cursor's headless docs: without --force, changes are only proposed, not
  applied. The README, the tool description and SECURITY.md say so; the agent mode row no longer promises "file edit"
  by default. CURSOR_SANDBOX=enabled|disabled (operator environment) passes --sandbox <mode> so an auto-approved
  agent can be confined; any other value ends the server at startup, by name.
• Streaming. Both agent tools run --output-format stream-json. Every event is parsed as it arrives
  (src/stream.ts): the terminal result is the run's result as before; a client that sent a progress token gets one
  notifications/progress per event (the model at start, each completed tool call with its target, each assistant
  message). A non-JSON line is kept as noise, never dropped silently.
• A structured result. cursor_agent and cursor_reply publish an outputSchema and return
  structuredContent: result, status, is_error, session_id, request_id, model (what cursor-agent reported at
  start), duration_ms, tool_calls, files_changed (file-tool write/edit/delete calls that reported success, each
  once — a shell command's writes are not inspected), files_proposed (such calls without success: proposed without
  --force, refused, failed), noise_lines (stdout lines that were not events) and stderr; the text keeps the answer
  first, then a metadata line, the files changed and the files proposed (src/run-report.ts, shared by both tools).
  Without a result event the last assistant message is the answer, the status is no-result-event and the run is
  an error — the raw transcript is never the answer. A result with null fields, a multi-byte character split across
  chunks, an observer that throws or a client that stopped listening never fail the run or the server.
• The cloud parameter is gone: it passed -c, which Cursor's parameter reference does not list and whose interactive
  meaning (the composer picker) cannot run headless. A caller still sending it is not an error; the flag is simply not
  passed. Cloud agents are a separate API (see the comparison).

Tests

• test/stream.test.mjs: a fake cursor-agent emits the documented stream-json events; the report, the files changed,
  the progress notifications and the parser's handling of a non-JSON line and of a result without a trailing newline.