Critical Issue: Cursor IDE Blocking User File Access and Control

Sorry but this is unreadable and false info that AI has clearly dreamed up: aggressive file permission control

In your post i gave alternative things to try which you didnt yet check.
As Cursor does not generally do such things and its not a known issue it would be good to have more info for the Cursor team to see what is happening. My suggestion with ls -la would be that step.

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