Rules in home folder (~/.cursor/rules) are not applied. From the Cursor 2.1 change log at https://cursor.com/changelog/2-1, I believe this should work.
Rules in home folder (~/.cursor/rules) will be included in context
Steps to Reproduce
Add a simple rule at ~/.cursor/rules/<rule_name>.mdc For example
---
alwaysApply: true
---
The agent should say "Hi, I am Batman" at the end of the response.
Submit a simple prompt using any model.
Expected Behavior
I’d expect “Hi, I am Batman” but it is never included.
Operating System
MacOS
Current Cursor Version (Menu → About Cursor → Copy)
I think this is a bug. I’m checking with the team on this.
As a workaround until it’s fixed, you can use Project Rules within your project/repository, though I understand that doesn’t fully solve your team sharing constraints. I’ll post here as soon as there’s any update.