What is the difference between Notepad, project root .cursorrules,Rules For AI in the Cursor Settings and the recent added Project Rules

Discussion
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I am a little confused about what is the difference between Notepad, project root .cursorrules,Rules For AI in the Cursor Settings and the recent added Project Rules.
Wish there is a clear document for these features. Thanks in advance.

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Configuration Files

  • .cursorrules: AI collaboration configuration
  • .cursorignore: Files excluded from AI analysis
  • Notepad: As commonly known about notepad, it is often called a temporary note of sorts. In Cursor, its function is to create a notepad. You can paste rules or a piece of markdown text or something. Then you go to chat or composer @ the notepad name you set and the cursor will read it.

Reference link about .cursorrules

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1/ Rules for AI apply to any project
2/ .cursorrules apply to currently opened project (it’s one of the projects files)
3/ Notepad is where you can store @ referrences, need to @ mention in prompt

No idea what Project Rules are - where to find them? I guess it’s just .cursorrules?

Example:
1/ DO NOT DELETE OR ALTER EXISTING COMMENTS!
2/ Always use version 123 of framework XYZ.
3/ Apply to all files in Notepad1
Notepad1: @file1 @file2 @file3