AGENTS.md not read in worktree agents

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

AGENTS.md not read in worktree agents by default. It works if I add a Cursor rule saying “always read AGENTS.md”. AGENTS.md is always read by default in local agents.

Steps to Reproduce

have an AGENTS.md that instructs the agent to greet you in a quirky way. Load a worktree agent and ask it to print the number of LOC in the current repo.

Expected Behavior

AGENTS.md read from all session types

Operating System

MacOS

Version Information

Version: 2.5.26 (Universal)
VSCode Version: 1.105.1
Commit: 7d96c2a03bb088ad367615e9da1a3fe20fbbc6a0
Date: 2026-02-26T04:57:56.825Z (5 days ago)
Build Type: Stable
Release Track: Default
Electron: 39.4.0
Chromium: 142.0.7444.265
Node.js: 22.22.0
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.3.0

For AI issues: which model did you use?

Codex 5.3

For AI issues: add Request ID with privacy disabled

n/a

Does this stop you from using Cursor

No - Cursor works, but with this issue

Kyle,

Thanks for the report! We’re already tracking this bug, and will update the thread when progress has been made.

This bug should be fixed in the upcoming 3.9!