This is a known issue, especially with a large number of rules. The team is already working on improving how long rules are handled. The issue is that they can take up too much of the model’s context.
A few things that will help us narrow it down:
Can you check the size of your rules?
How many rules do you have in Cursor Settings → Rules? We recommend keeping each rule under 500 lines. If you have one huge rule or lots of big ones, that could be the cause.
Workaround:
Split large rules into smaller, more focused ones
Use “Apply to Specific Files” instead of “Always Apply” where possible, it reduces context load
Make sure your rules use “Always Apply” and not “Agent Decides” since the latter is less reliable
Quick test:
Try creating one simple test rule, literally 2 to 3 lines, with type “Always Apply”, and see if it works. This helps confirm whether the issue is the size or something else.
If the issue still happens even with a short rule, send the Request ID from the chat (top right menu → Copy Request ID) so the team can check the details.