Cursor AI can receive your workspace folder path before any tool runs
A new Cursor chat can be given the absolute path of the opened workspace folder, even before the agent opens any file. Parent directory names may reveal details such as a local account name, a client relationship, or business activity. Cursor staff confirmed this in a November 12, 2026 forum reply, noting that project-specific directories under the user's home folder can also enter context. Knowing a location does not grant permission to read it, and .cursorignore only controls indexing rather than acting as a data-loss-prevention control. The article advises checking what a fresh chat reveals, reviewing the chat context, and renaming or relocating folders whose names leak sensitive details.
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