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Yes—opening an unfamiliar code repository in some IDE configurations can trigger project-controlled actions, but opening a folder in a file manager does not inherently run its code. The risk depends on the editor and its trust settings. VS Code opens unfamiliar folders in Restricted Mode; Oasis Security Research reported a Cursor configuration in which a repository task could run on folder open without a trust prompt.
Why opening a repository can be a security decision
A software repository can include editor settings and task definitions as well as source code. In VS Code, for example, task definitions can live in a project’s .vscode folder and run scripts or binaries. A task configured to run when a folder opens can therefore turn an editor’s workspace-opening behavior into an execution path.
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This is specific to an IDE interacting with project metadata and its own features. It does not mean that a folder is executable or that simply viewing it in a file manager runs its contents. What happens depends on the editor’s defaults, configuration, and whether you trust the workspace.
How the main editor safeguards differ
| Environment | What happens with an unfamiliar project | Important limits or qualifications |
|---|---|---|
| Visual Studio Code | Microsoft says a new, unfamiliar folder opens in Restricted Mode. The banner or status badge indicates that state. Tasks, terminals, debugging, certain workspace settings, unsupported extensions, and AI agents are limited or disabled pending trust. | Running or enumerating tasks prompts for trust. Workspace Trust is not a complete sandbox: a malicious extension could ignore it. Microsoft’s Workspace Trust documentation |
| Cursor, as described in Oasis Security Research’s report | Oasis reported that Workspace Trust was disabled by default in the configuration it examined. A malicious .vscode/tasks.json task using runOn: "folderOpen" could execute when a developer opened the repository, without a trust prompt. |
This describes the affected default configuration in the report, not an independent retest of every current Cursor version. The report was published September 10, 2025, and updated May 1, 2026. Oasis Security Research’s report |
| Microsoft Visual Studio | Visual Studio 2022 and later support trust prompts and trusted locations, and can warn about Mark of the Web on files and folders. | These are Visual Studio controls, not VS Code Workspace Trust. The warning behavior can be configured, so do not assume every installation prompts identically. Microsoft Learn’s trust-settings documentation |
What VS Code Restricted Mode does—and does not do
Microsoft describes the purpose directly: “When you open a new, unfamiliar folder, VS Code opens it in Restricted Mode to prevent automatic code execution while you review the contents.” In that state, VS Code limits actions that could execute project-controlled code. For instance, opening an integrated terminal is blocked by default because shell setup can execute code based on workspace contents. Debugging is disabled until trust is granted, and workspace settings that could point to malicious executables are restricted.
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Extensions that do not explicitly support Workspace Trust may be disabled or limited, and current documentation also says AI agents are disabled in Restricted Mode. Microsoft notes that agent context can introduce prompt-injection exposure. The feature is a safeguard, not a guarantee that no code can run: Microsoft warns, “Workspace Trust can’t prevent a malicious extension from executing code and ignoring Restricted Mode.” Install and run extensions only from publishers you trust.
Workspace Trust was introduced in VS Code 1.57, according to the May 2021 release notes. The current behavior and limits are documented in VS Code’s Workspace Trust guide.
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How to inspect an unknown repository more safely
- Open it without granting trust. In VS Code, leave the folder in Restricted Mode while you inspect it. Check the window’s banner or status badge so you know whether it is trusted.
- Review project-controlled automation before running anything. Look at task definitions such as
.vscode/tasks.json, particularly tasks configured to run on folder open. Treat a prompt to trust the folder as a decision to let the editor enable additional workspace capabilities, not as a routine click-through. - Do not open a terminal or start debugging just to see what happens. Both can lead to execution paths. Run a task, open an integrated terminal, start debugging, or enable an extension only when you understand why the project needs it and are prepared to accept that risk.
- Use isolation when inspection alone is not enough. For a repository you cannot yet trust, use a viewer-only editor or a disposable container or virtual machine rather than your everyday development environment.
What teams using Cursor should consider
Oasis Security Research recommends enabling Workspace Trust and requiring a startup prompt for teams using Cursor. It also suggests considering task.allowAutomaticTasks: "off" and using a viewer-only editor or disposable container or VM for unknown repositories. These are recommendations tied to the report’s findings; verify the current product behavior and setting availability in your team’s installed version rather than assuming every release has the same defaults.
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Trust should follow review, not curiosity. Before granting it, consider whether you know who supplied the repository, whether its task and workspace configuration is expected, and whether you are willing to let the editor enable terminals, tasks, debugging, extensions, or agents for that workspace. If the source or purpose is unclear, keep it restricted and inspect it in a more isolated environment.
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