Failed to connect to MCP server: MCP error -32000: Connection closed

I am new at n8n and mcp . I have installed mcp using npm in my windows 11 . i want to use mcp client with ai agent .

  • Installed n8n-nodes-mcp
  • Added an ai agent in n8n , connected gemini as LLM
  • added mcp client with list tools as operation
  • Added credentials Command : npx , Arguments : -y @openbnb/mcp-server-airbnb --ignore-robots-txt

when i give any prompt to search in airbnb , it wills gives an error :

Failed to execute operation: Failed to connect to MCP server: MCP error -32000: Connection closed

Queries :

  1. How to fix this issue MCP error -32000 .
  2. Since i have n8n locally ( downloaded using npm ) , where to set environment variable as true for N8N_COMMUNITY_PACKAGES_ALLOW_TOOL_USAGE.
  3. To use any mcp server from GitHub - modelcontextprotocol/servers: Model Context Protocol Servers , do we need to run that server locally or the above said credentials with handle everything .

Sorry for asking such dumb questions, but this things are not getting clarified from documentation.

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