Version: 1.2.1 - relative pathnames not working in terminal

Describe the Bug

in terminal sessions I can no longer use relative pathnames

Steps to Reproduce

any terminal command relative pathname is no longer valid

EVERY SCRIPT I HAVE NO LONGER WORKS

Expected Behavior

relative pathnames working

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.1 (user setup)
VSCode Version: 1.99.3
Commit: 031e7e0ff1e2eda9c1a0f5df67d44053b059c5d0
Date: 2025-07-03T06:16:02.610Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100