diff --git a/cursor-hooks/common.ps1 b/cursor-hooks/common.ps1
index 63d802da..629118d5 100644
--- a/cursor-hooks/common.ps1
+++ b/cursor-hooks/common.ps1
@@ -1,7 +1,6 @@
 # Common utility functions for Cursor hooks (PowerShell)
 # Dot-source this file in hook scripts: . "$PSScriptRoot\common.ps1"
-
-$ErrorActionPreference = "SilentlyContinue"
+# Note: ErrorActionPreference should be set in each script, not globally here
 
 # Get worker port from settings with validation
 function Get-WorkerPort {
diff --git a/cursor-hooks/install.sh b/cursor-hooks/install.sh
index 3f5d60a8..33b1571d 100755
--- a/cursor-hooks/install.sh
+++ b/cursor-hooks/install.sh
@@ -56,18 +56,23 @@ echo "Copying hooks.json..."
 cp "$SCRIPT_DIR/hooks.json" "$TARGET_DIR/hooks.json"
 
 # Update paths in hooks.json if needed
+# Use portable sed approach that works on both BSD (macOS) and GNU (Linux) sed
 if [ "$INSTALL_TYPE" = "project" ]; then
   # For project-level, paths should be relative
-  sed -i.bak 's|\./cursor-hooks/|\./\.cursor/hooks/|g' "$TARGET_DIR/hooks.json"
-  rm -f "$TARGET_DIR/hooks.json.bak"
+  # Create temp file, modify, then move (portable across sed variants)
+  tmp_file=$(mktemp)
+  sed 's|\./cursor-hooks/|\./\.cursor/hooks/|g' "$TARGET_DIR/hooks.json" > "$tmp_file"
+  mv "$tmp_file" "$TARGET_DIR/hooks.json"
 elif [ "$INSTALL_TYPE" = "user" ]; then
   # For user-level, use absolute paths
-  sed -i.bak "s|\./cursor-hooks/|${HOOKS_DIR}/|g" "$TARGET_DIR/hooks.json"
-  rm -f "$TARGET_DIR/hooks.json.bak"
+  tmp_file=$(mktemp)
+  sed "s|\./cursor-hooks/|${HOOKS_DIR}/|g" "$TARGET_DIR/hooks.json" > "$tmp_file"
+  mv "$tmp_file" "$TARGET_DIR/hooks.json"
 elif [ "$INSTALL_TYPE" = "enterprise" ]; then
   # For enterprise, use absolute paths
-  sed -i.bak "s|\./cursor-hooks/|${HOOKS_DIR}/|g" "$TARGET_DIR/hooks.json"
-  rm -f "$TARGET_DIR/hooks.json.bak"
+  tmp_file=$(mktemp)
+  sed "s|\./cursor-hooks/|${HOOKS_DIR}/|g" "$TARGET_DIR/hooks.json" > "$tmp_file"
+  mv "$tmp_file" "$TARGET_DIR/hooks.json"
 fi
 
 echo ""
diff --git a/src/services/worker-service.ts b/src/services/worker-service.ts
index 34796e30..95ff6042 100644
--- a/src/services/worker-service.ts
+++ b/src/services/worker-service.ts
@@ -116,26 +116,28 @@ function unregisterCursorProject(projectName: string): void {
 export async function updateCursorContextForProject(projectName: string, port: number): Promise<void> {
   const registry = readCursorRegistry();
   const entry = registry[projectName];
-  
+
   if (!entry) return; // Project doesn't have Cursor hooks installed
-  
+
   try {
     // Fetch fresh context from worker
     const response = await fetch(
       `http://127.0.0.1:${port}/api/context/inject?project=${encodeURIComponent(projectName)}`
     );
-    
+
     if (!response.ok) return;
-    
+
     const context = await response.text();
     if (!context || !context.trim()) return;
-    
+
     // Write to the project's Cursor rules file
     const rulesDir = path.join(entry.workspacePath, '.cursor', 'rules');
     const rulesFile = path.join(rulesDir, 'claude-mem-context.mdc');
-    
+
     mkdirSync(rulesDir, { recursive: true });
-    
+
+    // Write to temp file first, then atomically move (prevents corruption)
+    const tempFile = `${rulesFile}.tmp`;
     const content = `---
 alwaysApply: true
 description: "Claude-mem context from past sessions (auto-updated)"
@@ -150,8 +152,9 @@ ${context}
 ---
 *Updated after last session. Use claude-mem's MCP search tools for more detailed queries.*
 `;
-    
-    writeFileSync(rulesFile, content);
+
+    writeFileSync(tempFile, content);
+    fs.renameSync(tempFile, rulesFile);
     logger.debug('CURSOR', 'Updated context file', { projectName, rulesFile });
   } catch (error) {
     logger.warn('CURSOR', 'Failed to update context file', { projectName, error: (error as Error).message });