Reasoning models do not find and apply rules properly

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

When using a reasoning model, it does not follow the rule folder structure, like .cursor/rules/frontend/rule.mdc. The model tries to list the .cursor/rules folder, finds all folders but reads 2 at most, and sometimes it loses itself and keeps grepping the files.

In the screenshot below you can see that the model calls a ton of tool actions, thinks twice and then manages to read all files.

Steps to Reproduce

Set up a folder rule structure, choose a reasoning (Auto works as well) model and tell it to read and apply ALL rules. It will call a tool for every single folder and rule.

Expected Behavior

I’ve seen that non-reasoning models are great at finding and applying rules, even those nested in folders, the expected behavior is to be similar as to non-reasoning models.

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.8.0-pre.26.patch.0 (user setup)
VSCode Version: 1.99.3
Commit: 837cff666b99546e2fc86c96abd14b1b1ace1500
Date: 2025-10-13T08:11:42.554Z
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 10.0.26100

For AI issues: which model did you use?

Auto

For AI issues: add Request ID with privacy disabled

826f38e1-6534-48c9-be60-db49b99df1e1

Additional Information

Folder structure:
.cursor/rules/

  • core/
    • general.mdc
    • quality-assurance.mdc
    • token-optimization.mdc
  • technical/
    • patterns.mdc
    • style.mdc
  • ai-behavior/
    • coding.mdc
    • cot.mdc
    • prompt.mdc
    • prompts2.mdc
    • interface.mdc

Does this stop you from using Cursor

No - Cursor works, but with this issue

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