You go to
File → Preferences → VS Code Settings
Search for global, then you should find something like that
Find the .env or **/.env and then remove it like how the second screenshot showing
First Screenshot: https://thegalaxystars.cc/firstimage.png
Second Screenshot: https://thegalaxystars.cc/secondimage.png
This is also a reply to: Cursorignore being applied although there is NO .cursorignore file specified - Bug Reports - Cursor - Community Forum