Adding directory chat seems broken - The model is unable to see the files inside those directories, and can't use `@` shortcut to adda. folder

[vamshiaruru]

I am attaching two screenshots which tell what I mean. I have added the pages directory to the chat and gemini 2.5 pro can’t see the actual files inside the directory! This is really really annoying.
I am using the latest stable cursor - 0.47.8 and on mac

Please fix this. Gemini doesn’t work with agent mode, atleast let me use edit mode where I have some control over what’s going on. More and more these days I have to use something other than cursor for simple things and I wonder at what I point I should stop using cursor altogether.

[bamit99]

Yep. Same issue. Google search gave me your link. Does not make any sense to add uploading a folder if it cannot read the files.

[danperks]

Hey, unfortunately, we are currently facing some issues with codebase indexing, which may cause the Handshake Failed error, and some degraded performance in the features that rely on it, such as being able to @ codebase files (they don’t show up if they arent indexed, as the Agent would not be able to see them!).

We hope to have those solved soon, but you can track the status of this on status.cursor.com

Apologies for any inconvenience this may cause!