All AI features disabled, but project has no .cursorignore

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

I can’t use Cursor in some projects due to this issue (see screenshot)
.cursorignore is not present in project at all

Steps to Reproduce

  1. Git clone project
  2. Open any file
  3. See mark in file tab (on screenshot)

Expected Behavior

AI tools can be used

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.6.45 (user setup)
VSCode Version: 1.99.3
Commit: 3ccce8f55d8cca49f6d28b491a844c699b8719a0
Date: 2025-09-22T18:22:38.013Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.22631

For AI issues: which model did you use?

Sonet 4

Does this stop you from using Cursor

Yes - Cursor is unusable

@deanrie Could you take a look?
It seems like crucial bug

Hey, thanks for the report!

It’s possible that you have a .cursorignore file in a parent folder above the project you have open. This is actually a specific feature, as we wanted to ensure that a .cursorignore files in places like monorepos still take effect, even if you open one of the specific projects within the monorepo on it’s own in Cursor.

So for your case, my guess is you might have a .cursorignore file in the P:/init folder?

Secondly, files in your .gitignore are excluded by default, with the concept being that things like codefiles and the things you want indexed are usually included in a Git repo, but files like .envs and build files would equally not want to be in a Git repo or in the codebase index for the AI to use.

If not, you might want to check the cursor.general.globalCursorIgnoreList in the settings (not Cursor Settings) list, in case theres some changes to the default excluded file patterns.

@danperks Thanks for the response

  1. .cursorignore is not used in the project folder, any parent folder
  2. files with disabled AI Tools are available for git (see screenshot)
  3. cursor.general.globalCursorIgnoreList also do not includes this file as well, just default pattern (see second screen)

Do we have any other option?
Do you need any additional info from my side?

As an additional option, I have tried to create .cursorignore and set an exception
But it seems like it’s not working as well

After latest updates issue disappear

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