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I have a cursor rule that tells it about directories. Basically just X is UI, Y is BE, Z is auth.

Keep it short. It's enough for it to realize it needs to navigate directories.

Does cursor ever read your rules? It is constantly ignoring very clear directives in my .cursorrules file.

Have you upgraded to the new .mdc file format? I didn't get around to .cursorrules before this format came out, but I'm finding .mdc is reliable if configured well (e.g. with the right file extensions)

My understanding of the docs is that these are all handled the same: Cursor just adds any rules file to the context for each request, and that's it. I don't believe there is any mechanism by which to call special attention to particular rules in the context window. I could try renaming the file though.

I've never used rules. They're not portable to other IDEs, so I've never invested the effort.

I just have a bunch of markdown files with various prompts that I drop into context when I need them.

Yeah, just putting the structure in the rules and telling it to always specify the full path in commands was enough to fix any multi repo issues for me.

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