Links to nested directories do not work as supposed

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

If I drag and drop a link to a directory from the file panel into the chat, a link is created. However, if this directory is not the root directory of the project (for example, A/B/C), Cursor sees it as just C.

This means that when I ask to create a file in the A/B/C directory (dragged as a link), it creates a directory C in the root and places the file there.

Very old bug

Steps to Reproduce

Described

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.5.5 (user setup)
VSCode Version: 1.99.3
Commit: 823f58d4f60b795a6aefb9955933f3a2f0331d70
Date: 2025-08-25T17:40:25.290Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.19045

Does this stop you from using Cursor

No - Cursor works, but with this issue

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