The old version didn’t have this problem. For example, my development files and directories are located in the E drive, but in the latest version, it always automatically locates the cursor installation directory in the C drive. At first I thought it was AI’s problem, so I tried to give it the path directly, create files manually, etc. AI also replied that it was wrong, but when I started writing code, it ran to the C drive again. I debugged it 100 times, but it was still the same. I was about to collapse, and I wasted a whole night. 
Yes, I have folders in my root too… -p, src, tools, htdocs2, etc. Cursor did that on its own. The more I read on this forum the more I realize how horrible of a mistake it was to attempt to use v0.46