Cursor hijacks Cmd-K, Cmd-Shift-K, Cmd-L for launching AI. Some of these are used to clear the terminal.
You can type clear in the terminal, but that does not work if you have already typed in a command, and want to clear before it is run.
This is a workaround with a custom keyboard shortcut (I use Cmd-Alt-K, on mac, you can change to anything you want that doesn't conflict with your existing workflows).