Extremely small context window in 1.0 update

Describe the Bug

Before the latest update, I would hit ctrl + enter and the agent would usually have no problems accessing the entire codebase, even with hundreds of files. Since the update to 1.0 which I was forced to do, ctrl + enter seems to have been removed, and you have to enter the directories manually. That’s a huge hassle, but ok. But even if I enable Full Folder Content in settings, the agent tells me it cannot see my files. I get a warning symbol on the folder saying it’s too big to fit in context, yet the folder has 9 files and is only 4 kB.

What has prompted this massive downgrade?

Steps to Reproduce

Add folder as context in 1.0.

Expected Behavior

The agent has the ability to view all files in the folder provided as context.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.0.0 (user setup)
VSCode Version: 1.96.2
Commit: 53b99ce608cba35127ae3a050c1738a959750860
Date: 2025-06-04T19:44:25.253Z
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 10.0.22631

Does this stop you from using Cursor

Yes - Cursor is unusable