Disabled team rules still loaded into context and reported as always applied workspace rules

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

My entreprise ships 23 team rules, of which 3 are mandatory and 20 can be toggled off.
Toggling off the 20 optional rules doesn’t change anything, these are still loaded into the agent context, we can see that from the context usage or from asking a fresh agent what rules it has loaded

Steps to Reproduce

  1. Enable optional team rules
  2. Start a fresh agent and ask it to report the rules it currently have loaded based on its prompt and not the cursor config
  3. All rules should be loaded
  4. Disable all optional team rules
  5. Restart Cursor and repeat step 2
  6. Only mandatory rules should be known/reported by the agent and not the ones toogled off but they end up listed by the agent which describes them as always applied workspace rules (plus I see the context usage of rules is the same with those rules enabled or disabled)

Expected Behavior

Only mandatory team rules should be in the agent context and not the ones toogled off

Screenshots / Screen Recordings

Operating System

MacOS

Version Information

Version: 3.4.20 (Universal)
VSCode Version: 1.105.1
Commit: 0cf8b06883f54e26bb4f0fb8647c9500ccb43310
Date: 2026-05-15T02:26:10.351Z
Layout: glass
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.4.0

For AI issues: add Request ID with privacy disabled

403d5c3c-11ba-41ee-a42e-ebc3472625d4

Does this stop you from using Cursor

No - Cursor works, but with this issue

Thanks for re-testing after updating. I apologize — the fix that shipped in 3.4.12 was incomplete. Your disabled rules are still being injected into the agent context through a separate server-side path that the fix didn’t cover.

I’ve re-escalated this to the engineering team. We’ll follow up here when a more complete fix is available.