Earlier quoted context omitted.
The user's code folder? You mean the code I frequently pull from untrusted sources, unlike my .bashrc? Opening a GitHub project for review should not mean arbitrary code execution. Of course, that ship has long sailed, for all major IDEs. Heck, VSCode SSH and devcontainer remotes allow RCE by design.
The entire point of Cursor is to run autonomous coding agents. You are giving it a random untrusted repo, saying "hey it might have a virus, go crazy" and then getting mad that it caused harm? Check (and double check and triple check) your sources. If a malicious executable made it to your computer it is already too late.
So yeah, this is a major issue