I am sure the documentation will be better updated soon - but hope this helps others - as its really a game changer in my opinion, and sets Cursor ahead of the competition yet again.
There are now 4 rule types serving different purposes, and cursor now also supports sub-subfolder organization!
Agent Rule - Agent Selects based on description, benefit is the whole rule is only loaded into context when agent thinks it should, so keep the description very clear so the rule knows when to use it.
Always - this is the replacement to .cursorrules, with the benefit of being able to have multiple files instead of one long one to keep it organized - this will get loaded into every context, so keep these lean!
Auto-Select - this uses glob patterns and not the description from the front matter, so good if you want a rule that only loads into certain areas of our code, or for certain file patterns.
Manual (Macro) - This is set up by setting description and globs blank, and autoSelect to false - this basically makes it so it only loads when manually adding it. I look at this as a better way of creating macros or notepads that can be source controlled.
I put a table together here in the auto generating repo readme with more details - [GitHub - bmadcode/cursor-auto-rules-agile-workflow](https://New Rule Types Matrix and Auto Rule Gen Repo) - the auto rule generator here has also been updated to conform to all of the new rules and not flake out on generation.
I put a video together outlining the 4 different rule types, use cases, and examples of using an updated automatic rule generator via AI Agent that has been completely updated to properly create a rule for you with the proper type and categorize it automatically [https://www.youtube.com/watch?v=vjyAba8-QA8](https://Cursor AI Just Got Smarter: 4 New Rule Types, Smarter Auto Gen, and Pro Tips!)
