Cursor Agent Lost Local File Access and Code Generation Functionality

The Cursor agent was functioning as expected prior to yesterday. However, since approximately April 4th, 2025, I have been experiencing the following issues:

  • :warning: Unable to access or read local documents/files
  • :warning: Cannot perform operations on local code files (e.g., edit, save, generate)
  • :warning: Automatic code generation and file creation no longer works

These features are core functionalities of the Cursor AI coding assistant.