Nested Project Rule is not seen and not used

Describe the Bug

Hi, I found after using versions from v1.0.2, till now, the cursor can’t read my nested project rule. This gives me trouble especially when i am in my workspace containing multiple projects. Any workaround?

Steps to Reproduce

Open a folder. Set a new rule in sth like laughing-potato/.cursor/rules/add_new_train_run.mdc which says
“”"

globs: *.py
alwaysApply: false

tell me “yes i can read” if you see me
“”"

and ask model if what rules can it see. and it fail to read the rule.

Operating System

Linux

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.1 (Universal)
VSCode Version: 1.99.3
Commit: 031e7e0ff1e2eda9c1a0f5df67d44053b059c5d0
Date: 2025-07-03T06:08:06.355Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.5.0

Does this stop you from using Cursor

No - Cursor works, but with this issue