Wrong path for added folder to workspace

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

When I add a second folder to my workspace (outside of my main working directory), the agents attempt to resolve paths as if the added folder were inside the base working folder.

This used to work correctly, but now the behavior has changed.

I often work on a module for a framework.

My typical setup:

Main working folder → my module

Additional workspace folder → the framework source code

When I need to reference the framework, I add it as an additional folder in the workspace.

Agents try to access the additional folder as if it were located inside the main working directory.

This results in incorrect path resolution and file access failures.

Steps to Reproduce

Open a workspace with Folder A (module)

Add Folder B (framework) as an additional workspace folder

Ask the agent to access files from Folder B

Observe that it resolves paths relative to Folder A instead of Folder B

Expected Behavior

Agents should treat each workspace folder independently and resolve paths relative to their actual filesystem location

Operating System

Windows 10/11

Version Information

Version: 2.4.31 (system setup)
VSCode Version: 1.105.1
Commit: 3578107fdf149b00059ddad37048220e41681000
Date: 2026-02-08T07:42:24.999Z
Build Type: Stable
Release Track: Default
Electron: 39.2.7
Chromium: 142.0.7444.235
Node.js: 22.21.1
V8: 14.2.231.21-electron.0
OS: Windows_NT x64 10.0.26200

For AI issues: which model did you use?

gpt codex 5.3, gpt 5.2, sonnet 4.5

Does this stop you from using Cursor

No - Cursor works, but with this issue

Hey, thanks for the report. This is a known bug. In multi-root workspaces, the agent resolves paths relative to the first workspace folder instead of treating each folder independently.

A similar report was filed here: Code reference links in chat only resolve against the first workspace folder

The team is aware of this. No ETA yet, but your report helps with prioritization.

As a workaround for now, you can try opening the framework folder in a separate Cursor window and using it alongside your module window. Not ideal, but it avoids the path resolution issue entirely.