Indexing Problem: Cursor is Indexing entire notebook instead of the workspace folder

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1

I am not sure if this is a bug, a misconfig. but recently i detected that index doesnt work any more since it is trying to index my entire (win11)notebook with 1 TB of data, even though i added .cursorignore and added file exclude filters etc etc. - I already tried deleting caches in /roaming and so on… asked AI, tried so many things.
Also as you can see in the screenshot attached all links work except the “Configure ignored files” link - it doesn’t do anything.

even this doesnt work:
in the workspace file:
…

"files.exclude": { 
			"**/Recycle.Bin": true,
			"**/ygwin64/**": true,
			"**/.act": true,
			"**/*.gz": true,

…

nor this:

"files.exclude": {
			"**/{Recycle.Bin,System Volume Information,Program Files,Program Files (x86),Windows}/**": true
			"**/Recycle.Bin": true,
			"**/ygwin64/**": true,
			"**/.act": true,
			"**/*.gz": true, ....

anything i do has no effect.

also the .cursorignore file which is in the same project folder has these lines:

Recycle.Bin
ygwin64/
ygwin64\
**/Recycle.Bin

and it still doesnt work.

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