So basically we are facing the exact same problem now that we made the community aware in the topic:
and we got the response from the Cursor team that is intentional and well thought out change to eliminate custom modes and instead use MDC files as ruleset.
So what happens is basically the “Premium“ mode (which supposed to “intelligently“ choose models according to the context) is some of the cases totally, most of the cases (like 95%) partially ignoring even the simplest MDC always apply rulesets.
MDC rules was somewhat working with premium models before like 80% of the time kinda like they supposed to ( I am talking at this point about Opus and Sonnet models), but now the new “Premium“ mode just ignores even the simplest instructions.
As an example a given rule:
DURING THE ENTIRE CONVERSATION YOU CAN NOT USE RUN COMMANDS, YOU CAN ONLY READ, MODIFY, SEARCH, AND USE MCP BUT YOU ARE NOT ALLOWED TO RUN COMMANDS ANY KIND from the TERMINAL at ANY POINT!
Literally the first action by the agent is starting to run a terminal command. And this keeps happening again and again. And yes, the mdc file is in the correct location and run as Always Apply.
Like, yes, I understand the concept that the community would like to see more and more to be implemented, but this kind of slop is just totally breaks the development experience.