AI Support Bot Invents Nonexistent Policy

An AI support bot for the code editor Cursor invented a nonexistent subscription policy, triggering user cancellations and public backlash this week. When developer "BrokenToasterOven" complained about being logged out when switching between devices, the company's AI agent "Sam" falsely claimed this was intentional: "Cursor is designed to work with one device per subscription as a core security feature."
Users took the fabricated policy as official, with several announcing subscription cancellat