Have you tried this with latest version (1.5.9) again?
I did give the prompt, and it wanted to write to the desktop, but Cursor was asking permission for it. When I rejected, it then wanted to use another method, but I rejected it too.
In the end it was not able to do anything but advice how to write the file myself.
I do not have any of your rules or anything, and this was just quick test from my part.
