File reference via folders and fuzzy matching no longer working (and attaching references generally worse since update)

Describe the Bug

Referring to files for context used to support fuzzy matching not working. The dropdown based on @... used to seem like it was fuzzy matching and supported folders in the path - now I can only type file names … and file names like index.ts are a pretty poor selector or the reference drops from the text editor interface.

Steps to Reproduce

type a partial path / folder partial path to create a context refrence

Expected Behaviour

Dropdown should order in a reasonable way

Operating System

MacOS

Current Cursor Version (Menu → Abount Cursor → Copy)

Version: 0.43.5
VSCode Version: 1.93.1
Commit: 2eaa79a1b14ccff5d1c78a2c358a08be16a8e5a0

Additional Infomation

No

Does this stop you from using Cursor

No - Cursor works, but with this issue