New AI Project "The editor could not be opened because the file was not found."

I am trying to create a new ai project with this prompt:

Hello Cursor! I’d like to set up the foundational elements for a new web application. Here’s a brief overview of the tech stack I have in mind:

  • Backend API with FastAPI.
  • Database management with SQLAlchemy and migrations handled by Alembic.
  • PostgreSQL as the relational database.
  • pgAdmin for database management and visualization.
  • Docker for containerizing the services.
  • Caddy as a reverse proxy with automatic SSL via Let’s Encrypt.


  1. FastAPI Setup:
  • Create a new FastAPI application with a basic route that returns “Hello, World!”.
  1. SQLAlchemy & Alembic:
  • Set up SQLAlchemy integration with FastAPI.
  • Initialize Alembic for database migrations.
  1. PostgreSQL & pgAdmin:
  • Define Docker configurations for both PostgreSQL and pgAdmin.
  • Ensure the FastAPI application can connect to the PostgreSQL database.
  1. Docker Configuration:
  • Create a Dockerfile for the FastAPI application.
  • Set up a docker-compose.yml that orchestrates the FastAPI app, PostgreSQL, pgAdmin, and Caddy.
  1. Caddy Setup:
  • Configure Caddy as a reverse proxy to the FastAPI application.
  • Set up automatic SSL for a dummy domain (like I’ll modify this domain later.
  1. Directory Structure:
  • Organize the project in a clear directory structure, separating configurations, database models, routes, and other concerns.

Please provide a clean codebase with clear comments, so I can continue building on top of this foundation.

It seems to get stuck making a directory


Screenshots attached.

I’m using the latest version of cursor.

Please advise how to resolve.

1 Like

I was able to reproduce this issue. Please remove “6. Directory Structure:” from your prompt. That should fix it. I apologize for the inconvenience. We will work on improving the AI Project feature.