Agent ignores referenced rules in a nested directory

Bug Reports
1

Steps to reproduce:

  1. Create .cursor/rules/script/create-script.mdc with:
---
description:
globs:
alwaysApply: false
---
Always create scripts using TypeScript in the "./scripts/*.ts" directory
  1. Reference rule in agent with @create-script.mdc, hit enter to include it
  2. Prompt to “Create a hello world script”

Result: Usually a bash script in the root

Current workaround: Rename to a markdown “.md” file, then reference it.