Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
Parallel agents fail to merge their changes to the main branch if cursor was opened in a subfolder (not the root) of the git repo.
Steps to Reproduce
Create a git repo, subfolder client, file readme.md with contents “Hello World”.
`mkdir parallel_agent_subfolder_merge
cd parallel_agent_subfolder_merge
git init
mkdir client
echo Hello World> client\Readme.md
git add client\Readme.md
git commit -m “Add client Readme.md with Hello World”
git status`
Open project in Cursor and select the “/client” subfolder.
Start an agent, switch from “Local” to “Worktree”. Ask it to add an exclamation mark to the “Hello World” in “readme.md”.
It properly adds it. Review and it shows you it modified the file.
Now click “Apply” and Cursor complains about merge conflicts. Selecting overwrite and it creates a new “/client/client/readme.md”.
Expected Behavior
Agent properly merges changes to “/client/readme.md”.
Screenshots / Screen Recordings
Operating System
Windows 10/11
Version Information
Version: 2.4.22 (user setup)
VSCode Version: 1.105.1
Commit: 618c607a249dd7fd2ffc662c6531143833bebd40
Date: 2026-01-26T22:51:47.692Z
Build Type: Stable
Release Track: Default
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Windows_NT x64 10.0.26200
For AI issues: which model did you use?
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For AI issues: add Request ID with privacy disabled
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Does this stop you from using Cursor
Sometimes - I can sometimes use Cursor