Describe the Bug
I’ve seen in the official documentation (Cursor – Rules) that nested rules automatically attach when files in their directory are referenced.
However, I couldn’t find any clarification on what happens when a rule is marked as “Always” or “Agent Requested.”
From my experience, placing an Always or Agent Requested rule inside a subdirectory (such as a team folder) still causes it to apply across all files and conversations — not just within the team’s scope.
Is this expected behavior, or is it a bug? Or could it be that the documentation is missing this nuance?
Steps to Reproduce
Set “Always” rule from within a sub-directory.
frontend/.cursor/rules/always.mdc
Operating System
MacOS
Current Cursor Version (Menu → About Cursor → Copy)
Version: 1.1.7
VSCode Version: 1.96.2
Does this stop you from using Cursor
No - Cursor works, but with this issue