In mac SSH mode, composer+chat misapply changes outside of main folder

Hello, thanks a ton for the new cursor SSH on mac update! I have found a few bugs which I will document.

Application of diffs from composer or chat are buggy when trying to apply changes to folders outside of the direct context of the SSH directory.

For example, say you have a project with the following structure

project/
    service/
    common/
    ...serviceA-Z/ (x99)

As to not overwhelm and lag the editor I often open just serviceX or serviceY in the editor, but frequently end up editing files in the common service as they apply to all services.

Problem: When trying to make a change to a file in common/ while the editor is in service/ it applies in an unusual way.

  1. When in chat, the apply button does nothing
  2. When in composer, the apply button creates a new file (in the common directory) with only the suggested diff, not the entire file.

The file is otherwise editable directly by typing and saving manually.

Other files that are directly in service/ seem to respond normally to diffs presented by the composer or chat.

I have showcased the bug in action via an unlisted YouTube video: https://youtu.be/QWtVQ1wnXSQ

I am on Cursor 0.41.2 and I am on the paid tier.