No project rules found

I have a few rules set in .cursor\rules but it seems that cursor can’t see them. Some of those rules were created manually while the others were created using the “Add new rule” button in cursor settings → General

In the Project Rules section is hows “No project rules found. Click the + button to add a new rule” even after adding a rule

I asked composer if it can see the rules. Please check the response in the attached image

Running cursor:
Version: 0.45.9
VSCode Version: 1.96.2
Commit: cce0110ca40ceb61e76ecea08d24210123895320
Date: 2025-02-02T06:44:49.761Z
Electron: 32.2.6
Chromium: 128.0.6613.186
Node.js: 20.18.1
V8: 12.8.374.38-electron.0
OS: Windows_NT x64 10.0.19045

Update:
When creating a new rule and then closing the opened rule file in the editor, it will prompt to save the file. Only then it will list the rule under Project Rules
It will only prompt you as long as you haven’t closed the cursor IDE. When reopening the IDE and closing the rule file, it will not ask to save it unless you make some edits to the file.