Cursor rules types and application folders

Describe the Bug

Two issues here:

  1. When a header is included in a rules file, it doesn’t update the UI selections at the top of the file.

  2. With nested cursor rules, the ‘file pattern matches’ check does not seem to prepend the folder location.
    Relatedly, if a cursor rules file is in a frontend subfolder and I select Rule Type “Always”, does that mean it applies to any actions happening in the frontend subfolder? Or does it default to always applying to the project? I imagine the former is the goal. However, if I look at the rules in settings, it will seem as if those rules apply to the whole project.

Steps to Reproduce

Create a project with the following structure:

project/
.cursor/rules/ # Project-wide rules
backend/
server/
.cursor/rules/ # Backend-specific rules
frontend/
.cursor/rules/ # Frontend-specific rules

Test different rule types in each file and check how they get captured in Cursor settings. Also check how the UI reacts if you type in it.

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.1.6 (Universal)
VSCode Version: 1.96.2
Commit: 5b19bac7a947f54e4caa3eb7e4c5fbf832389850
Date: 2025-06-25T02:16:57.571Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.4.0

Does this stop you from using Cursor

No - Cursor works, but with this issue

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