Cursor CLI 2026.10.22 applies nested AGENTS.md on edits and reroutes blocked subagent models
When the agent edits or creates a file in a subdirectory, it now picks up that directory's AGENTS.md and nested always-apply rules even if it never read a file there. Custom subagents pinned to a blocked or unavailable model now fall back to the parent agent's model instead of erroring, and agent env deploy --env can redeploy onto an existing Cloud Agent environment.