Roject Rules show “Agent Decides” instead of “Always Apply” – is this expected behavior after latest update?

After the latest update, Project Rules only show “Agent Decides” and I can’t select “Always Apply” anymore. Is this expected? Has Cursor moved fully to agent-driven rule loading?

also when you create it doesnt even apear in file as well . idk if it is bug , in windows pc it works fine with same version/update but in mac its like this?

This has dissapeard i can not choose with latest updates

Hey, thanks for the report. Yep, this is a known bug: when you create a Project Rule, it creates SKILL.md instead of RULE.md. The team is already working on it.

Based on another report, it looks tied to certain accounts. Some users see an “Import Agent Skills” option in the Rules settings, and then it creates skills files instead of rules files.

Can you share your Cursor version? (Help > About Cursor) We’ve already shipped some fixes, and I want to check if this still happens on the latest version.

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Version: 2.3.34
VSCode Version: 1.105.1
Commit: 643ba67cd252e2888e296dd0cf34a0c5d7625b90
Date: 2026-01-10T21:17:10.428Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Darwin arm64 24.6.0

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also when i “Log out” from account it works fine it does create the rule where you can chose any option you want whether ” Apply” or other etc..

and then when i log in back it always create skills folder with subfolder with skill.md file Screenshots for reference how it looks in both scenarios,

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