Hey, thanks for the report. From the screenshot I can see all toggles are off (Match Case, Whole Word, Regex, Preserve Case), so it’s a plain literal replace. That means it’s a simple case and it’s not explained by any regex weirdness.
What I noticed: it’s specifically matches #2 and #3 that get merged (adjacent lines 4 and 5), but #3 and #4 (also adjacent, lines 5 and 6) do not. That looks like a specific edge case, not a general “skip every other” pattern.
To narrow down the cause, can you help with three things?
Is it reproducible every time? If you restart Cursor and repeat the steps on the same text, do you get the same result?
Does it happen with cursor --disable-extensions?
If you can, please try the same thing in a clean VS Code (any recent release). That will show if this is our bug or an upstream baseline issue.
A short video showing the behavior would also help a lot, if it’s easy to record.
Once you have the results, I’ll log it internally. I can’t promise an ETA yet.
