I'm confused about Cursor context files!

In Cursor Chat or Composer.

Let’s say I start a new chat and select 3 files as context and ask a question.

Cursor will respond.

Then if I want to follow up, I find those 3 files auto selected for me as you can see in the image.

What does that mean?

Does it mean that Cursor will include these files again in the follow-up message, consuming a lot of the LLM context and likely confusing the LLM??

Or Cursor smartly decides how to send them to the LLM?

Can someone please explain this to me?

It’s pretty confusing. And it’s important to understand to be able to use Cursor effectively.