Hey, thanks for the thorough report. It’s really helpful that you traced it back to ripgrep behavior with path scoping.
We’re tracking some related but different multi-root workspace issues, like wrong path resolution Wrong path for added folder to workspace and non-clickable file links Code reference links in chat only resolve against the first workspace folder in multi-root workspaces, so file links for other folders aren't clickable. But the grep tool ignoring the path parameter is a separate issue, and we’ve now logged it.
No ETA yet, but your report helps us prioritize.
Workaround for now: open each large repo in a separate Cursor window. It’s not ideal for cross-referencing, but it should get search performance back to normal.