Cursor IDE agent unable to see dir in context

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

Agent unable to see context

“Add Directory to Cursory Chat” does nothing because agent is unable to see and utilize it.

For example, add a directory to context and instruct agent to create files in it. Agent would create files in root.

Steps to Reproduce

Add a directory to agent chat.
Tell agent to create code in in dir name (not path).
Agent will create a dir in root and add code there.

Expected Behavior

When mentioned name of directory, agent should understand that it is referencing the one added to context.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.2 (user setup)
VSCode Version: 1.99.3
Commit: faa03b17cce93e8a80b7d62d57f5eda6bb6ab9f0
Date: 2025-07-07T06:19:13.016Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Additional Information

using wsl2

Does this stop you from using Cursor

No - Cursor works, but with this issue

Hey, I noticed you’re using a rather old version of Cursor. Try upgrading to the latest version, where we’ve made many improvements.