Cursor, LM Studio hit invalid_literal error

This smells like schema drift, not a broken model.

• –Cursor’s forum says local models need a publicly accessible HTTPS endpoint, and requests still flow through Cursor’s backend.
• –Cursor docs say custom API keys only work with standard chat models; Agent mode and other tool-heavy paths have known format limits.
• –LM Studio supports OpenAI-compatible chat/completions and tool calling, but the model/runtime has to emit the exact function schema Cursor validates against.
• –Cloudflare Tunnel solves reachability, not payload compatibility, so it won’t fix a malformed tools response.
• –The quickest sanity check is to try the same LM Studio endpoint with a plain OpenAI client or disable agent/tool use in Cursor.