How do I get my .env.local to not have AI features disabled?

Here is the written down process in case others search here:

Cursor Settings > General Settings > Open Editor Settings

Files: Exclude

Make sure that .env is not included in the exclude list. This prevents the .env file from being displayed in your project.

Then,

Cursor › General: Global Cursor Ignore List

Remove the .env file by clicking on the trash can icon, save your files, close the cursor, and reopen it.

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