I’ve found it extremely useful to have a well designed README.md that I can update with documentation and also just “free thoughts” about features, the WHY:s of the project and all that.
However, quite often Cursor goes in and completely scrambles my README.md.
This should almost be taken care of in a custom way by the application. At certain points, or when the user calls for it, update README.md to be up to date. Before starting to code a larger featture, read through README and see if we can re-use code etc.