Cursor AI gets confused for markdown edits

How to Reproduce:

Take any markdown file (like README.md) and ask to refactor any part of it.

  • The Unexpected Result: Cursor AI fails to render the markdown edits in the conversation view & the apply button is also broken.

This is likely because the conversation view itself is a markdown view. when it gets the response for the markdown file edit, it conflicts with it’s rendering.

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