One more update. When cursor gives you the entire file or a good portion beforehand for the diffing tool in apply to compare to the diff is actually able to collapse successfully. The issue with this is that you then have to read the entire file rather than the diffed portion before applying. (screenshot 1)
However when it uses the // – existing code – functionality to make the initial message in the chat smaller the diff is much much larger with no collapsed code. (screenshot 2)
I danced around for an hour with Claude in cursor convinced that it had an edit_file tool that did this nicely but neither ask nor agent have this tool. Not sure what that was about. At the end though it would be really nice if the diff could more accurately collapse the sections and not diff my entire file. I am not sure how this changed in from version 1.5.11 but as originally mentioned this is a regression in behavior that is negatively impactful. I hope the details help with a resolution
