A repository carries a project-level Cursor CLI config file that sets a model, Vim mode and a sandbox option alongside some permissions. Which of those settings actually take effect?

The principle — The CLI reads a global config file and, optionally, a project-level one, but the two are not equal partners.

Why the key is correct — Only permissions can be configured at the project level. Everything else, including the model, Vim mode and sandbox settings, has to be set globally, so those keys sit in the committed file doing nothing.

Why the others are wrong — Layering local configuration over global configuration is a common pattern in other tools, which is why it trips people up here. The project file also does not replace the global one, so nothing falls back to built-in defaults. And the split runs the opposite way from the safety-flavoured guess: permissions are the part a repository may pin.

Remember this — A committed project config pins permissions for the repository, and nothing else.

Sources — Cursor's CLI Configuration documentation.