Can cursor see all project files and terminal/output windows

From what I can gather Cursor is supposed to be able to see all the project files for context. Is this correct? Do I have to do anything in particular to make it happen.

Also, can it see the output in the terminal and output windows and iterate tests and fixes. Currently I have to copy the output window contents into the composer chat and ask it to fix the issue, then run it again, hit another error, cop, paste, fix again. This usually goes on for a while before things start to work.

Is it possible to automate this cycle?