No changes made - LLM fails to make any edits at all or makes wrong breaking edits

Describe the Bug

In some cases when the file being edited is too large, and in particular when my workspace consists of opening one repo folder as the workspace, then adding folder to workspace of another repo, both in same local top directory, and then saving workspace to file and using this workspace, LLM tool calls make repeated attempts to edit a file and keep failing, eventually failing and reporting they failed due to wrong path making the edits not apply.

Steps to Reproduce

In some cases when the file being edited is too large, and in particular when my workspace consists of opening one repo folder as the workspace, then adding folder to workspace of another repo, both in same local top directory, and then saving workspace to file and using this workspace, LLM tool calls make repeated attempts to edit a file and keep failing, eventually failing and reporting they failed due to wrong path making the edits not apply. Sometimes they also apply edits that delete the rest of the file after that edit point.

Expected Behavior

correct edits

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.1.3
VSCode Version: 1.96.2
Commit: 979ba33804ac150108481c14e0b5cb970bda3260
Date: 2025-06-15T06:35:49.230Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Darwin arm64 23.1.0

Does this stop you from using Cursor

Yes - Cursor is unusable