Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
The cursor IDE is not performing the expected behavior when editor.foldingStrategy is set to auto. Folding is only performed based on indentation. This means it is not possible to fold elements such as variables, f-strings, unless they are indented.
The bug has been described with screenshots here Can't fold docstrings n python and here Folding strategy is not working
It seems to be associated to the anysphere release and/or problems with pylance integration.
Is there any solution to this issue?
Steps to Reproduce
Please see the two posts referenced.
Expected Behavior
Please see the two posts referenced.
Operating System
Windows 10/11
Linux
Current Cursor Version (Menu → About Cursor → Copy)
Version: 1.7.46 (user setup)
VSCode Version: 1.99.3
Commit: b9e5948c1ad20443a5cecba6b84a3c9b99d62580
Date: 2025-10-14T01:21:46.830Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.22631
Does this stop you from using Cursor
No - Cursor works, but with this issue

