Hey, thanks for the report. I can see the screenshots of your settings, and External-File Protection is already turned off.
This is a known bug, and it’s usually related to one of these two cases:
Multi-folder workspace: if you have multiple folders in one workspace (File > Add Folder to Workspace), Cursor treats files in the second folder as “external” and asks for confirmation. Workaround: open each folder separately.
Git worktrees: if you use worktrees, Cursor may detect file paths incorrectly.
Could you check:
Are you using a multi-folder workspace or worktrees?
Open Help → Toggle Developer Tools → Console and share any errors you see, especially when the Accept prompt shows up.
The team is aware of the issue and is working on a fix. For now, you can try opening the project in a separate Cursor window without adding a second folder.