Where does the bug appear (feature/product)?
Cursor IDE
Describe the Bug
When using Agents Window to create a new agent in a new worktree (Worktrees | Cursor Docs), the agent does not automatically read the rules/context files (AGENT.md, .cursor rules). The issue happens ONLY when using “new worktree”, running directly in a a local repo works as expected.
Steps to Reproduce
- Open cursor Agent window
- Click New Agent
- Select a local repo, branch and “New Worktree” environment
- Write any prompt.
- Observe that agent is not following instructions from rules files (neither AGENT.md, neither .cursor files)
- Open “Context Usage” report and observe there is not “Rules” section.
- Run the same prompt in the same repo but in “local” environment → observe rules being read and applied.
Expected Behavior
Agent follow the rules.
Screenshots / Screen Recordings
Operating System
MacOS
Version Information
Version: 3.7.36
VS Code Extension API: 1.105.1
Commit: 776d1f9d76df50a4e0aeca61819a88e7c1b861e0
Date: 2026-06-13T00:31:56.287Z
Layout: glass
Build Type: Stable
Release Track: Default
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
xterm.js: 6.1.0-beta.256
OS: Darwin arm64 24.6.0
For AI issues: which model did you use?
Any model
Does this stop you from using Cursor
No - Cursor works, but with this issue

