O3 LLM manual mode context issue

Describe the Bug

When using ‘manual mode’, with o3 Max, the LLM is unable to parse or use context from current files in the codebase. i.e. it is refencing some code that doesn’t exist even when the correct file is attached as context in ‘manual mode’.

When switching to ‘agent’ mode then the LLM is able to discover the context issue and prints out the following messages as reasons for the previous LLM context issue failures:

“Apologies for the confusion earlier – I was working from memory of an older branch”

“My previous description of … referred to an earlier version that is not present in the file you have.”

Steps to Reproduce

Attach large context and use o3 Max in ‘manual mode’.
Switching to ‘agent’ mode with grep tooling detected the context issue.

Expected Behavior

Files should be read as currently in codebase, and not from some distant branch from maybe months ago.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.1.7 (user setup)
VSCode Version: 1.96.2
Commit: 7111807980fa9c93aedd455ffa44b682c0dc1350
Date: 2025-07-01T07:38:05.103Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor