Deletion of whole project by cursor and complete data loss

Description:
When using Cursor, the tool decided by itself to automatically creates an inner folder with the same name as the main project folder. This behavior causes Cursor to lose context regarding the project’s actual folder location. When Cursor is asked to delete the duplicate folder, it deleted the outer project itself, resulting in the complete loss of all project files.

Steps to Reproduce:

I dont know how to reproduce this bug and i dont want to reproduce this bug as i loss all my files

Expected Behavior:
Only the duplicate inner folder should be deleted, preserving the main project folder and all its contents.

Actual Behavior:
Deleting the duplicate folder causes Cursor to remove the entire project folder, leading to complete data loss. Also restoring to a point in conversation did not work.

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