It is a very obvious thing in UNIX world. This should not happen, no matter if it's Cursor or VIM or whatever program you are using. So, yes, it is a serious is

It is a very obvious thing in UNIX world. This should not happen, no matter if it's Cursor or VIM or whatever program you are using. So, yes, it is a serious issue, and it's more of a Windows fuckup than Cursor itself. It's basic OS behaviour that's been fixed in UNIX for decades. You want to run a program in the current folder, you write ./program, everyone know this.