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Additional Information
Add any other context about the problem here.
Does this stop you from using Cursor?
Yes - Cursor is unusable
Sometimes - I can sometimes use Cursor
No - Cursor works, but with this issue
The more details you provide, the easier it is for us to reproduce and fix the issue. Thanks!
In-document (fragment) links in markdown preview don’t work — e.g. table-of-contents links like [Section](#section) in a README. Clicking them either shows “The file is not displayed in the text editor because it is a directory” or “Unable to open ‘README.md’” / “The editor could not be opened because the file was not found.” In one workspace setup, clicking “Create File” then tried to create C:\README.md (operation not permitted).
Steps to Reproduce
Open a repo that has a README.md with a table of contents (e.g. fragment links #section).
Open the README in Cursor and switch to Preview (or open preview side-by-side).
Click any in-document link (e.g. a TOC entry).
Observe: link doesn’t scroll to the section; instead see “directory” or “file not found” (and in some setups, wrong path like C:\README.md).
Expected Behavior
Clicking an in-document link should scroll the preview (or editor) to the target heading, same as in VS Code and on GitHub.
A previous thread (“Links in plan docs not clickable”) said the latest version fixed link issues; that may apply to Plan docs. In-document links in regular .md preview are still broken in 2.6.18.
I am having the same issue. The AI was unable to fix it. I was finally forced to Google search for a solution, and ran into this thread. It seems the issue is known by the Cursor Dev team but not yet fixed.